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