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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 InventoryEnding InventoryRaw material*30,00040,000Finished goods70,00060,000-* Three pounds of raw material are needed to produce each unit of finished product.If Paradise Corporation plans to sell 510,000 units during next year, the number of units it would have to manufacture during the year would be:A) 500,000 unitsB) 520,000 unitsC) 510,000 unitsD) 570,000 units

Sagot :

abiolataiwo2015

Answer:

A) 500,000 units

Explanation:

Calculation to determine what the number of units it would have to manufacture during the year would be:

Using this formula

Units produced= Finished goods Ending inventory+Units sold-Finished goods Beginning inventory

Let plug in the formula

Units produced = 60,000 + 510,000 − 70,000

Units produced = 500,000 units

Therefore the number of units it would have to manufacture during the year would be:500,000 units

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