When preparing a production budget, the required production equals: a. budgeted sales + beginning inventory + desired ending inventory. b. budgeted sales - beginning inventory + desired ending inventory. c. budgeted sales - beginning inventory - desired ending inventory. d. budgeted sales + beginning inventory - desired ending inventory.

b. budgeted sales - beginning inventory + desired ending inventory.

Explanation:

budgeted sales and the desired ending inventory are the total needs of the business for the period. The business need to fulfill this needs or it will fail to achieve the level of sales or their ending inventory.

The beginning inventory units are in the company's stock at the beginning of the period. They are already done, so it decreases the needs for inventory.

With this in mind, we conclude the following:

budgeted sales + desired ending inventory = total units required

units required - beginning inventory = units to be produced.

In one step will be:

budgeted sales + desired ending inventory - beginning inventory

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