Question

For next year, Williams, Inc., has budgeted sales of 19,000 units, targeted ending finished goods inventory of 1,750 units, and beginning finished goods inventory of 1,250 units. All other inventories are zero. How many units should be produced next year

Answer 1

Answer:

Production= 19,500

Explanation:

Giving the following information:

Ending finished goods inventory of 1,750 units

Beginning finished goods inventory of 1,250 units.

Sales= 19,000

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

Production= sales + desired ending inventory - beginning inventory

Production= 19,000 + 1,750 - 1,250

Production= 19,500