Jiggy Company plans to sell 33,000 units during the month of May. The company plans to have 2,500 units on hand at the end of the month. If 1,200 units are on hand on May 1, how many units must be produced during May?
A)33,000
B)35,500
C)34,300
D)31,800

Question

Quizplus · Accepted Answer

To find the number of units that must be produced during May, we need to use the following formula:

Units to be produced = planned sales + desired ending inventory - beginning inventory

Planned sales = 33,000 
Desired ending inventory = 2,500 
Beginning inventory = 1,200

Units to be produced = 33,000 + 2,500 - 1,200 = 34,300

Therefore, the answer is (C) 34,300 units.

Jiggy Company Plans to Sell 33,000 Units During the Month