Question

The Turlington Company has 12,000 units in beginning finished goods inventory. If sales are expected to be 60,000 units and Turlington desires 15,000 units in ending finished goods inventory, how many units must Turlington produce?

a.57,000
b.60,000
c.63,000
d.75,000

Answer 1

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:

1. Expected sales = 60,000 units
2. Desired ending finished goods inventory = 15,000 units
3. 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.