ECONOMICS

Detailed explanation-1: -Answer and Explanation: The correct alternative would be “d.” Explanation: A production budget can be a report that estimates the number of items a plant will manufacture based on projected sales and required ending inventory levels for future periods.

Detailed explanation-2: -Therefore, in simple equation form, production budget = The sales budget or forecast + Planned inventory to be maintained in the end – Inventory in the beginning.

Detailed explanation-3: -To determine beginning inventory cost at the start of an accounting period, add together the previous period’s cost of goods sold with its ending inventory. From that sum, subtract the amount of inventory purchased during that period. The resulting number is the beginning inventory cost for the next accounting period.