Basile Corporation has budgeted sales of 36,000 units, target ending finished goods inventory of 6,000 units, and beginning finished goods inventory of 1,800 units. How many units should be produced next year?

Question

Quizplus · Accepted Answer

The number of units to be produced can be calculated as follows:
Units to be produced = Budgeted sales + Target ending inventory - Beginning inventory
= 36,000 + 6,000 - 1,800
= 40,200 units. 
Therefore, the best choice is B.

Basile Corporation Has Budgeted Sales of 36,000 Units, Target Ending