Question

The March 1 inventory of finished units at the Kay Company is 5,000. During March the company plans to sell 40,000 units and desires a March 31 inventory of 10,000 units. The number of units that the company should plan on producing in March is: A. 60,000 units B. 50,000 units C. 45,000 units D. 40,000 units E. 35,000 units

Answer 1

Answer:

C. 45,000 units

Explanation:

Inventory of finished units at March 31

10,000

Add:

Sales units

40,000

Total units

50,000

Less:

Inventory of finished units March 1

(5,000)

Balance

45,000

Therefore, the number of units that the company should plan on producing in March is 45,000 units