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Valentin [98]
2 years ago
7

Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are p

lanned for the year. Beginning Inventory Ending Inventory Finished goods (units) 31,000 41,000 Raw material (grams) 61,000 51,000 Each unit of finished goods requires 3 grams of raw material. The company plans to sell 260,000 units during the year. The number of units the company would have to manufacture during the year would be:
Business
1 answer:
dmitriy555 [2]2 years ago
6 0

Answer:

270,000 units

Explanation:

Given that:

Beginning Inventory for finished goods: 31,000

Ending Inventory for finished goods :  41,000

Beginning Inventory for raw materials: 61000

Ending Inventory for raw materials: 51,000

Units planned to be sold: 260,000

We compute the produced finished goods = Ending inventory + Units sold − Beginning inventory

           = 41,000 + 260,000 − 31,000 = 270,000

The number of units the company would have to manufacture during the year would be 270,000

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