Accounting Multiple Choice Question – 30 August 2022

A company has forecast the following sales for the first three months of next year.

• month 1 units 2,000
• month 2 units 2,100
• month 3 units 2,400

At the start of month 1 there were 300 units in stock.

The company requires that the closing stock at the end of each month should be equal to 1/3 of the sales for the following month.

How many units must be produced in month 2?

Select ONE answer:

1. 2,000 units
2. 2,200 units
3. 2,400 units
4. 2,900 units

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – 2,400 / 3 = 800 + 2,100 – (2,100 / 3) = 2,200
3. Not correct
4. Not correct

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