Question

Parwin Corporation plans to sell 29,000 units during August. If the company has 11,000 units on hand at the start of the month, and plans to have 12,000 units on hand at the end of the month, how many units must be produced during the month?

Answer 1

Answer:

30000 units.

Explanation:

Given:

Parwin Corporation plans to sell 29,000 units during August.

We can assume it as Cost of good sold.

If the company has 11,000 units on hand at the start of the month. We can assume it as Beginning inventory

And plans to have 12,000 units on hand at the end of the month. We can assume it as Ending inventory.

Question asked:

How many units must be produced during the month ?

Solution:

We can determine unit must be produced (purchase) during the month by this formula:

Cost of good sold = Beginning inventory + Purchase - Ending inventory

29000 = 11000 + Purchase - 12000

29000 = - 1000 + Purchase

Adding both sides by 1000

30000 = Purchase

Therefore, as Parwin Corporation plans to sell 29,000 units during August, he must produced 30000 units during the month.