A manufacturer desires ending finished goods inventory of 5,000 units. Their budgeted unit sales are 20,000 units and beginning finished goods inventory is 3,000 units. The units to be produced isMultiple choice question.18,00022,00025,00030,000
Question
A manufacturer desires ending finished goods inventory of 5,000 units. Their budgeted unit sales are 20,000 units and beginning finished goods inventory is 3,000 units. The units to be produced isMultiple choice question.18,00022,00025,00030,000
Solution
To find out the units to be produced, you can use the following formula:
Units to be produced = Budgeted unit sales + Desired ending finished goods inventory - Beginning finished goods inventory
Substituting the given values into the formula:
Units to be produced = 20,000 units (Budgeted unit sales) + 5,000 units (Desired ending inventory) - 3,000 units (Beginning inventory)
Units to be produced = 22,000 units
So, the correct answer is 22,000 units.
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