Question

Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Inventory Ending Inventory Raw material* 56,000 66,000 Finished goods 96,000 66,000 * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 560,000 units during next year, the number of units it would have to manufacture during the year would be:

Answer 1

Answer:

Budgeted Production Units  530,000   Units

Explanation:

The computation of the number of units manufactured is shown below;

Budgeted Sale Units   560,000  Units

Add: Ending Inventory of Finished Goods   66,000  Units

Less: Beginning Inventory of Finished Goods  96,000  Units

Budgeted Production Units  530,000   Units

Hence, the above represent the answer