For next year,Toowong Inc.has budgeted sales of 70 000 units,target ending finished goods inventory of 1000 units,and beginning finished goods inventory of 9800 units.All other inventories are zero.How many units should be produced next year?

Question

Quizplus · Accepted Answer

To determine the number of units that should be produced next year, we need to use the following formula:

Units to be produced = Sales for the year + Target ending inventory - Beginning inventory

Units to be produced = 70,000 + 1,000 - 9,800

Units to be produced = 61,200

Therefore, Toowong Inc. should produce 61,200 units next year in order to meet their budgeted sales and maintain their desired ending inventory level.

For Next Year,Toowong Inc