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Hi, I have seen a similar question here on the Forum but the answer doesn’t seem to be the same on the online mock exam. Could you help me, please?
A company manufactures and sells a single product. At the end of the manufacturing process all units are inspected and 20% are rejected and scrapped. Next year the budgeted sales are 384,000 units and the inventory of finished units will increase by 4,000 units.
What is next year’s budgeted production (in units) which will be subject to inspection?The test says the answer is 388,000. But the 388,000 should not be only the 80%?
The correct answer is 485,000 (388,000 / 0.8)
However I am puzzled because I have just checked, and although 388,000 is given as one of the choices, the test is showing the correct answer as being 485,000.
Oh I am very sorry about that. It’s my mistake. I took a few print screen when doing the test so I could revise it today but for this question I actually copy before getting the results and I had marked it wrong. My sincere apologies for wasting your time.
It is no problem. I am grateful to you for checking and letting me know when there are errors 🙂
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