EA1.

LO 7.2Blue Book printing is budgeting sales of 25,000 units and already has 5,000 in beginning inventory. How many units must be produced to also meet the 7,000 units required in ending inventory?

27,000 units

Explanation:

The units must be produced is shown below:

The formula is

Number of units produced = Budgeting sale units + ending inventory units - beginning inventory units

= 25,000 units + 7,000 units - 5,000 units

= 32,000 units - 5,000 units

= 27,000 units

For computing it, we simply added the ending inventory units and deduct beginning inventory units to the budgeting sale units