Grey Company has 24000 units in beginning finished goods. If sales are expected to be 120000 units for the year and Grey desires ending finished goods of 30000 units how many units must the company produce?
A) 114000
B) 120000
C) 126000
D) 150000

Question

Quizplus · Accepted Answer

Grey Company wants to end the year with 30,000 units and expects to sell 120,000 units, giving a total of 150,000 units needed (30,000 + 120,000 = 150,000). Since they already have 24,000 units in beginning finished goods, they only need to produce 126,000 units (150,000 - 24,000 = 126,000) to meet their desired ending inventory and expected sales. Therefore, the correct answer is C.

Grey Company Has 24000 Units in Beginning Finished Goods