Production and sales estimates for June are as follows: $\begin{array}{lr}
\text { Estimated inventory (units), June 1 } & 18,500 \
\text { Desired inventory (units), June } 30 & 19,000 \
\text { Expected sales volume (units): } & \
\text { Area X } & 3,000 \
\text { Area Y } & 4,000 \
\text { Area Z } & 5,500 \
\text { Unit sales price } & \$ 20
\end{array}$ ? The number of units expected to be manufactured in June is:
A) 10,000.
B) 12,000.
C) 13,000.
D) 12,500.

Question

Quizplus · Accepted Answer

To calculate the number of units to be manufactured, add the expected sales volume (3,000 + 4,000 + 5,500 = 12,500 units) to the desired ending inventory (19,000 units) and subtract the beginning inventory (18,500 units). This results in 13,000 units to be manufactured.

Production and Sales Estimates for June Are as Follows ? the Number of Units Expected to Be Manufactured in