Denton Company has 10,000 units on hand at the beginning of the year and plans to sell 100,000 units during the year. If the ending inventory needs to be twice the beginning inventory, Denton will need to produce 90,000 units during the year.

Question

Quizplus · Accepted Answer

To meet the requirement of ending inventory being twice the beginning inventory (20,000 units), Denton needs to produce 110,000 units (100,000 sold + 20,000 ending inventory - 10,000 beginning inventory).

Denton Company Has 10,000 Units on Hand at the Beginning