Consider the following information for Aqua Company, a producer of pump shafts.Sales 500,000 unitsDesired ending inventory 120,000 unitsBeginning inventory 80,000 unitsCalculate the units to be produced to meet the sales needed and to satisfy the ending inventory requirement.a. 540,000 unitsb. 460,000 unitsc. 300,000 unitsd. 580,000 units
A
To calculate the units to be produced to meet the sales needed and to satisfy the ending inventory requirement, we need to use the following formula:
Units to be produced = Sales + Ending inventory – Beginning inventory
Substituting the given values, we get:
Units to be produced = 500,000 + 120,000 – 80,000
Units to be produced = 540,000 units
Therefore, the answer is option (a) 540,000 units.
More Answers:
Discover the Best Low-Risk Tax-Free Investment Options: Treasury Bills and Tax-Exempt Money-Market FundsMisconceptions About Industrial Development Revenue Bonds: Understanding the True Interest Payment Source.
The Importance of Sales Forecast for a Company’s Stock Value: Explained by a Social Science Expert
Error 403 The request cannot be completed because you have exceeded your quota. : quotaExceeded