To meet the sales demand and have 4,200 units available for the next quarter, the company should produce 420,000 units during the current quarter.
To calculate how many finished goods units the company should produce during the quarter, we will need to add the desired ending inventory to the sales budgeted for the quarter and then subtract the beginning inventory. So, the calculation would be 416,000 units (sales budgeted) + 4,200 units (desired ending inventory) - 200 units (beginning inventory) = 420,000 units to be produced during the quarter. This ensures that the company not only meets the sales demand but also has the desired number of units available at the beginning of the next quarter.