Which of the following equations is used to prepare a production budget?

Multiple Choice

1.Budgeted unit sales Desired units of ending finished goods inventory + Units of beginning finished goods inventory = Required production in units

2.Budgeted unit sales + Desired units of ending finished goods inventory Units of beginning finished goods inventory = Required production in units

3.Budgeted unit sales + Desired units of beginning finished goods inventory Units of ending finished goods inventory = Required production in units

4.Budgeted unit sales Desired units of beginning finished goods inventory + Units of ending finished goods inventory = Required production in units