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Question 1: Budgeted sales of X for December are 18,000 units. At the end of the production process for X,
10% of production units are scrapped as defective. Opening inventories of X for December are
budgeted to be 15,000 units and closing inventories will be 11,400 units. All inventories of finished
goods must have successfully passed the quality control check. The production budget for X for
December, in units, is:
A. 12,960
B. 14,400
C. 15,840
D. 16,000
Correct Answer: D
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