Question

Waterway Industries has 24000 units in beginning finished goods. If sales are expected to be 130000 units for the year and Waterway desires ending finished goods of 30000 units, how many units must the company produce

Answer 1

136,000 units

Step-by-step explanation:

Given the following information,

Beginning finished goods = 24,000 units

Sales = 130,000 units

Ending finished goods = 30,000 units

Computation of units the company must produce.

= Sales + Ending finished goods - Beginning finished goods

= 130,000 + 30,000 - 24,000

= $136,000 units

Therefore, the company must produce 136,000 units