Question

Beginning Inventory Ending Inventory Finished goods (units) 24,000 34,000 Raw material (grams) 54,000 44,000 Each unit of finished goods requires 2 grams of raw material. The company plans to sell 190,000 units during the year. The number of units the company would have to manufacture during the year would be:

Answer 1

Answer:

Production= 200,000

Explanation:

Giving the following information:

Beginning Inventory Ending Inventory

Finished goods (units) 24,000 34,000

The company plans to sell 190,000 units during the year.

To calculate the production required, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 190,000 + 34,000 - 24,000

Production= 200,000