Answer:
Terrence plan to produce 39,600 units during March
Explanation:
The Inventory at the start of each period is beginning inventory.
March 1 is the start of the month, and the beginning inventory is 2,700 units.
The Inventory at the end of each period is ending inventory.
March 31 is the end of the month, and the ending inventory is 2,300 units.
Estimated sale for the period is 40,000.
As we know sales are made from the inventory available for sale and any leftover at the end of the period is ending Inventory. As we have all these value we need to calculate the units to be produced. From following Formula
Ending Inventory = Beginning Inventory + Production in the period - Sale in the period
2,300 = 2,700 + Production in the period - 40,000
2,300 = Production in the period - 37,300
2,300 + 37,300 = Production in the period
Production in the period = 39,600 units
