Calculate Units Produced
Unit produced during the year can be calculated by the
following formula. Closing stock is added with unit sold and opening stock is
deducted.
Units Produced Formula
Unit produced = Unit Sold + Closing Stock – Opening Stock
Unit
Sold
|
10,000
|
Add:
Closing Stock
|
4,000
|
Less
: Opening Stock
|
(2,000)
|
Unit
Produced
|
12,000
|
Unit produced formula are key part of the production
budget. We can estimate the production units from our sales budget.
