Lea Company produces hand tools.Budgeted sales for March are 10,000 units.Beginning finished goods inventory in March is budgeted to be 1,300 units,and ending finished goods inventory is budgeted to be 1,400 units.How many units will be produced in March?

Question

Quizplus · Accepted Answer

To determine the units that need to be produced, we need to calculate the total units required for March.

Total unit required = Budgeted sales + Ending finished goods inventory - Beginning finished goods inventory 
Total unit required = 10,000 + 1,400 - 1,300 
Total unit required = 10,100

Therefore, the company needs to produce 10,100 units in March. The correct choice is C (10,100 units).

Lea Company Produces Hand Tools