Reference: 07-06
Pardise Company plans the following beginning and ending inventory levels (in units) for July: $$\begin{array} { | l | l | l | }
\hline & \text { July 1 } & \text { July 30 } \
\hline \text { Raw material } & 40,000 & 50,000 \
\hline \text { Work in process } & 10,000 & 10,000 \
\hline \text { Finished goods } & 80,000 & 50,000 \
\hline
\end{array}$$ Two units of raw material are needed to produce each unit of finished product.
-If Pardise Company plans to sell 480,000 units during July, the number of units it would have to manufacture during July would be:

Question

Reference: 07-06
Pardise Company plans the following beginning and ending inventory levels (in units) for July: $$\begin{array} { | l | l | l | } 
\hline & \text { July 1 } & \text { July 30 } \
\hline \text { Raw material } & 40,000 & 50,000 \
\hline \text { Work in process } & 10,000 & 10,000 \
\hline \text { Finished goods } & 80,000 & 50,000 \
\hline
\end{array}$$ Two units of raw material are needed to produce each unit of finished product.
-If Pardise Company plans to sell 480,000 units during July, the number of units it would have to manufacture during July would be:

Quizplus · Accepted Answer

To calculate the units to manufacture, consider the beginning and ending inventory levels and the sales plan. For finished goods, the company starts with 80,000 units, plans to sell 480,000 units, and wants to end with 50,000 units. Thus, the calculation is: (480,000 units to be sold + 50,000 desired ending inventory) - 80,000 beginning inventory = 450,000 units to be manufactured.

Reference: 07-06 Pardise Company Plans the Following Beginning and Ending

Reference: 07-06
Pardise Company Plans the Following Beginning and Ending