Question

Parsons Corporation plans to sell 18,000 units during August. If the company has 5,500 units on hand at the start of the month, and plans to have 6,000 units on hand at the end of the month, how many units must be produced during the month

Answer 1

Parsons Corporation must produce 18,500 units during the month.

Step-by-step explanation:

To find the number of units that must be produced during the month, we need to calculate the net production needed.

Net production = Units to be sold + Desired ending inventory - Beginning inventory

Net production = 18,000 + 6,000 - 5,500 = 18,500 units

Therefore, Parsons Corporation must produce 18,500 units during the month.