The number of units to be produced in a period can be determined by adding the expected sales to the desired ending inventory and then deducting the beginning inventory.

A. True. B. False.

A.True

Explanation:

The movement/change in the balance of inventories at the start and end of a period is due to sales and production. This can be expressed mathematically as

Opening balance + items produced - item sold = closing balance

As such,

items produced = closing balance + items sold - opening balance

Hence, the number of units to be produced in a period can be determined by adding the expected sales to the desired ending inventory and then deducting the beginning inventory.

True

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