Production budget in each period of the budget are listed the number of units are produced to meet the needs of sales and give the desired ending inventory.(Accounting for site management, n. d.) The production budget to calculate the number of units of the product must be produced and derived from a combination of sales forecasts and the expected number of inventories of finished products to have on hand (usually the safety stock to cover unexpected increased demand). (Accounting tools site, n. d.)
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