Question

Ardel Co. budgeted to sell 222,000 units of Zbox in September. Production of one unit of Zbox requires three pounds of aluminum and five pounds of steel powder. The beginning inventory and the desired ending inventory (in units) are as follows: Beginning Inventory Desired Ending Inventory Zbox 35,000 24,000 Aluminum 41,000 34,000 Steel powder 37,000 42,000 How many units of Zbox are to be manufactured by Ardel Co. during September?

Answer 1

Answer:

Explanation:

We are asked for Zbox production, so we ignore the raw materials information for this question.

We use the inventory identity to solve for production

$Beginning Inventory + Production = Ending Inventory + Sales$

$Production = Ending Inventory + Sales- Beginning Inventory$

September sales 222,000 units

desired ending inventory 24,000 units

total production need 246,000 units

(beginning inventory 35,000) units

Production requirement for September 211,000 units