In preparing the production budget for Ibadan Foods Limited, the following data is available for April 2024: Budgeted sales = 25,000 units; Opening finished goods inventory = 4,000 units; Desired closing finished goods inventory = 6,500 units. What is the budgeted production quantity?

The production budget formula is: Budgeted Production = Budgeted Sales + Desired Closing Inventory – Opening Inventory = 25,000 + 6,500 – 4,000 = 27,500 units. Option A deducts closing inventory instead of adding it. Option C ignores inventory adjustments entirely. Option D incorrectly adds all three figures together.