Question

Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Inventory Ending Inventory Raw material* 50,000 60,000 Finished goods 90,000 60,000 * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 530,000 units during next year, the number of units it would have to manufacture during the year would be:

Answer 1

Number of units to be manufactured 500000

Step-by-step explanation:

The computation of the no of units to be manufactured is given below:

Number of units budgeted to be sold 530000

Add: Ending finished goods inventory 60000

Total requirement 590000

Less: Beginning finished goods inventory -90000

Number of units to be manufactured 500000

The same is relevant