For next year, Dunphy Company has budgeted sales of 30,000 units, target ending finished goods inventory of 1,000 units, and a beginning finished goods inventory of 800 units.All other inventories are zero._____ units should be pro?duced.
A)29,800
B)30,000
C)30,200
D)31,800

Question

Quizplus · Accepted Answer

To solve the problem, we need to use the following formula:

Units to be Produced = Units Needed for Sales + Target Ending Finished Goods Inventory - Beginning Finished Goods Inventory

Units Needed for Sales = 30,000
Target Ending Finished Goods Inventory = 1,000
Beginning Finished Goods Inventory = 800

By substituting these values into the formula, we get:

Units to be Produced = 30,000 + 1,000 - 800 = 30,200

Therefore, the correct answer is C) 30,200.

For Next Year, Dunphy Company Has Budgeted Sales of 30,000