Horvath Corporation had beginning inventory of 22,000 units and expects sales of 76,500 units during the year.Desired ending inventory is 19,500 units.How many units should Horvath Corporation produce?

Question

Quizplus · Accepted Answer

Horvath Corporation should produce enough units to cover the expected sales and achieve the desired ending inventory. The formula is: Beginning Inventory + Production - Sales = Ending Inventory. Solving for Production: Production = Sales + Ending Inventory - Beginning Inventory = 76,500 + 19,500 - 22,000 = 74,000 units.

Horvath Corporation Had Beginning Inventory of 22,000 Units and Expects