Gore Company has budgeted sales of 7,000 units, target ending finished goods inventory of 1,000 units, and a beginning finished goods inventory of 300 units. _____ units should be produced.
A)8,300
B)7,700
C)6,300
D)5,700

Question

Quizplus · Accepted Answer

To determine the number of units that should be produced, we need to calculate the total units needed, which is the sum of units required for sales and ending inventory minus beginning inventory. 
Total units needed = Budgeted sales + Target ending inventory - Beginning inventory 
Total units needed = 7,000 + 1,000 - 300 
Total units needed = 7,700 
Therefore, the answer is choice B, 7,700 units.

Gore Company Has Budgeted Sales of 7,000 Units, Target Ending