Randy Company has budgeted sales of 12,000 units, target ending finished good inventory of 2,000 units, and a beginning finished goods inventory of 600 units.How many units should be produced?

Question

Quizplus · Accepted Answer

To determine how many units should be produced, we need to use the formula:
Production = Sales + Target ending inventory - Beginning inventory
Substituting the given values, we get:
Production = 12,000 + 2,000 - 600
Production = 13,400 units. 
Therefore, the best choice is B.

Randy Company Has Budgeted Sales of 12,000 Units, Target Ending