Final answer:
To determine the number of units Turlington must produce, we need to consider the beginning finished goods inventory, desired ending finished goods inventory, and expected sales. The equation to calculate this is units to produce = expected sales + desired ending finished goods inventory - beginning finished goods inventory. Plugging in the values, Turlington must produce 63,000 units.
Step-by-step explanation:
To determine the number of units that Turlington must produce, we need to consider the beginning finished goods inventory, the desired ending finished goods inventory, and the expected sales.
Using the equation: Units to produce = expected sales + desired ending finished goods inventory - beginning finished goods inventory, we can calculate:
- Expected sales = 60,000 units
- Desired ending finished goods inventory = 15,000 units
- Beginning finished goods inventory = 12,000 units
Plugging these values into the equation: Units to produce = 60,000 + 15,000 - 12,000 = 63,000 units.