Question

Orange corporation has budgeted sales of 22 comma 00022,000 ​units, targeted ending finished goods inventory of 7 comma 0007,000 ​units, and beginning finished goods inventory of 6 comma 0006,000 units. how many units should be produced next​ year

Answer 1

Production units = Sales units + Ending Finished Goods Inventory - Beginning Finished Goods Inventory

                            = 22,000 + 7,000 - 6,000
                            = 23,000 units