Meers Corporation had beginning inventory of 17,000 units and expects sales of 79,000 units during the year. Desired ending inventory is 19,900 units. How many units should Meers Corporation produce?

Question

Quizplus · Accepted Answer

To calculate the number of units Meers Corporation should produce, you add the desired ending inventory to the expected sales and then subtract the beginning inventory. This gives you: 79,000 (expected sales) + 19,900 (desired ending inventory) - 17,000 (beginning inventory) = 81,900 units.

Meers Corporation Had Beginning Inventory of 17,000 Units and Expects