Question

"Alou Company has 20,000 beginning finished goods units. Budgeted sales units are 160,000. If management desires 15,000 ending finished goods units, what are the required units of production

Answer 1

155,000

Explanation:

The computation of the required units of production is shown below:-

Required units of production = Sales units + Ending finished goods - Beginning finished goods

= 160,000 units + 15,000 units - 20,000 units

= 155,000

Therefore for computing the required units of production we simply applied the above formula.