Question

arafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Beginning Inventory Ending Inventory Finished goods (units) 27,000 77,000 Raw material (grams) 57,000 47,000 Each unit of finished goods requires 3 grams of raw material. The company plans to sell 740,000 units during the year. The number of units the company would have to manufacture during the year would be:

Answer 1

$790,000

Step-by-step explanation:

Arafiny CorporationProduction Budget

Budgeted unit sales 740,000

Add desired ending finished goods inventory77,000

Total needs 817,000

Less beginning finished goods inventory 27,000

Required production in units 790,000

Therefore the number of units the company would have to manufacture during the year would be:$790,000