Which of the following is needed to prepare the production budget? a.Expected unit sales b.Cost of direct materials needed for production c.Units of materials in ending inventory d.Direct labor needed for production e.None of these choices are correct.

Production budget can be defined as a report or plan that measures the amount of units that will be produced during a particular period of time. It is used by manufacturers to measure what it would cost to manufacture a particular product.

Production budget is used by managers of different organisations to estimate the number of units that they have to produce in future periods which would be in the basis of the future estimated sales numbers. Managers also utilize this report as a planning tool for future production development, machine times, and planning.

Parrain Parrain · Answer 2 · 2021-11-18T12:28:51+01:00

When the production budget is being prepared, an entry that is needed is a. Expected unit sales.

The production budget simply shows the amount of goods that need to be produced in a period.

The simple formula is:

= Expected unit sales + Desired ending inventory - Beginning inventory

As shown, the production budget cannot be calculated without the expected unit sales because the company needs to know what they need to sell in order to know what to produce.

In conclusion, the expected unit sales are needed for the production budget.

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