Question

A company plans on selling 500 units. The selling price per unit is $10. There are 60 units in beginning inventory, and the company would like to have 100 units in ending inventory. How many units should be produced for the coming period?
a.540 units

b.2,000 units

c.2,035 units

d.365 units

e.400 units

Answer 1

Answer:

Units to be produced will be 540

So option (a) will be the correct answer

Explanation:

We have given number of units sold = 500 units

Beginning inventory is given = 60 units

And ending Inventory= 100 units

We have to find units to be produced

Units to be produced is given by

Units to be Produced= Ending Inventory + Units to be Sold - Beginning Inventory = 500 + 100 - 60 = 540 units

So 540 units are produced

So option (a) will be the correct answer