Question

Paradise Corporation Budgeted on an annual basis for it fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Inventory Raw materials 55,000 Finished goods 95,000 Ending inventory raw material 65,000 Finished goods 65,000. Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 555,000 units during next year, the number of units it would have to manufacture during the year would be:________. a. 500,000 units b. 555,000 units c. 585,000 units d. 525,000 units.

Answer 1

d. 525,000 units.

Step-by-step explanation:

The computation of the number of units manufactured during the year is shown below:

= Number of units sold + ending finished goods inventory - beginning finished goods inventory

= 555,000 units + 65,000 units - 95,000 units

= 525,000 units

hence, the correct option is d. 525,000 units

We simply applied the above formula so that the correct value could come

And, the same is to be considered