Answer:
The correct answer is 408,000 units
Explanation:
Computing the finished goods units to be produced during quarter is as:
= Desire units - Beginning inventory units
where
Desire units is 3,000
Beginning inventory units is 1,000
So,
=3,000 units - 1,000 units
= 2,000 units
Now, computing the finished goods units as:
Finished goods units = 2,000 units + Sales budgeted for the quarter
Finished goods units = 2,000 units + 406,000 units
Finished goods units = 408,000 units
NOTE: It should be 408,000 not 40800.
