Question

Orange Corporation has budgeted sales of 26 comma 000 ​units, targeted ending finished goods inventory of 8 comma 000 ​units, and beginning finished goods inventory of 4 comma 000 units.

How many units should be produced next​ year?

A. 38 comma 000 units

B. 34 comma 000 units

C. 30 comma 000 units

D. 26 comma 000 units

Answer 1

C. 30 comma 000 units

Step-by-step explanation:

Inventory to be produced = Sales +ending inventory - Beginning inventory

= 26,000 + 8,000 -4,000

=30,000 Units (Answer is C. 30 comma 000 units ).