Question

Dallas corporation had beginning inventory of​ 18,700 units and expects sales of​ 80,000 units during the year. desired ending inventory is​ 19,500 units. how many units should dallas corporation​ produce?

Answer 1

First, the amount that is needed in order to complete the 80,000 expected sales given that there is already 18,700 units is calculated by subtraction of 18700 from 80,000.

n = 80,000 - 18,700 = 61,300

If the company wishes to have 19,500 inventory at the end of the year, the total number of units to be produced is,

T = 61,300 + 19,500 = 80,800

Answer: 80,800 units