Question

Parwin Corporation plans to sell 23,000 units during August. If the company has 8,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units must be produced during the month?

a. 24,000
b. 22,000
c. 32,000
d. 31,000

Answer 1

Answer:

a. 24,000

Explanation:

The estimate of the units produced is shown below:

= Sales units + ending inventory units - starting inventory units

= 23,000 units + 9,000 units = 8,000 units

= 24,000 units

We simply added the ending inventory units and subtract the starting inventory units from the sales units so that the correct quantities can arrive.