Pardee Company plans to sell 12,000 units during the month of August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at the end of the month, how many units must be produced during the month?

Question

Quizplus · Accepted Answer

To find the number of units to be produced, calculate the difference between the units needed for sales and the change in inventory: 12,000 (sales) + 2,000 (desired ending inventory) - 2,500 (beginning inventory) = 11,500 units.

Pardee Company Plans to Sell 12,000 Units During the Month