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2 January, 13:35

Orange Corporation has budgeted sales of 26000 units, targeted ending finished goods inventory of 6000 units, and beginning finished goods inventory of 3000 units. How many units should be produced next year?

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  1. 2 January, 17:25
    0
    29,000 units

    Explanation:

    The computation of the number of units produced next year is shown below:

    Number of units produced next year = Ending finished goods inventory units + budgeted sales units - beginning finished goods inventory units

    where,

    Ending finished goods inventory units is 6,000 units

    Budgeted sales units is 26,000 units

    And, the beginning finished goods inventory units is 3,000 units

    So, the number of units produced is

    = 6,000 units + 26,000 units - 3,000 units

    = 29,000 units

    We simply applied the above formula
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Home » Business » Orange Corporation has budgeted sales of 26000 units, targeted ending finished goods inventory of 6000 units, and beginning finished goods inventory of 3000 units. How many units should be produced next year?
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