For next year, Manzo, Inc., has budgeted sales of 30,000 units, target ending finished goods inventory of 1,500 units, and beginning finished goods inventory of 900 units. All other inventories are zero. How many units should be produced next year?

Question

Quizplus · Accepted Answer

To determine how many units should be produced, we need to use the following formula:

Units to be produced = budgeted sales + target ending finished goods inventory - beginning finished goods inventory

Therefore, units to be produced = 30,000 + 1,500 - 900 = 30,600 units.

Hence, the correct answer is choice letter C.

For Next Year, Manzo, Inc