Denton Company wants to have 10,000 units on hand at the end of the year after marketing 100,000 units during the year. If the beginning inventory is 5,000 units, Denton needs to produce 105,000 units during the year.

Question

Quizplus · Accepted Answer

To determine the number of units Denton needs to produce, add the desired ending inventory (10,000 units) to the units marketed (100,000 units) and subtract the beginning inventory (5,000 units): 10,000 + 100,000 - 5,000 = 105,000 units.

Denton Company Wants to Have 10,000 Units on Hand at the End