Pardise Company plans the following beginning and ending inventory levels (in units) for July:
$\begin{array} {| l | r | r | }
\hline & \text { July 1 } & \text { July 31 } \
\hline \text { Raw material } & 40,000 & \mathbf { 5 0 , 0 0 0 } \
\hline \text { Work in process } & 10,000 & 10,000 \
\hline \text { Finished goods } & 80,000 & 50,000 \
\hline
\end{array}$Two units of raw material are needed to produce each unit of finished product.

-If Pardise Company plans to sell 480,000 units during July,what would be the number of units it would have to manufacture during July?
A) 440,000 units.
B) 450,000 units.
C) 480,000 units.
D) 510,000 units.

Question

Pardise Company plans the following beginning and ending inventory levels (in units) for July:
$\begin{array} {| l | r | r | } 
\hline & \text { July 1 } & \text { July 31 } \
\hline \text { Raw material } & 40,000 & \mathbf { 5 0 , 0 0 0 } \
\hline \text { Work in process } & 10,000 & 10,000 \
\hline \text { Finished goods } & 80,000 & 50,000 \
\hline
\end{array}$Two units of raw material are needed to produce each unit of finished product.

-If Pardise Company plans to sell 480,000 units during July,what would be the number of units it would have to manufacture during July?
A) 440,000 units.
B) 450,000 units.
C) 480,000 units.
D) 510,000 units.

Quizplus · Accepted Answer

To find the number of units to manufacture, calculate the difference between the sales and the change in finished goods inventory: 480,000 units (sales) + (50,000 - 80,000) units (change in finished goods) = 450,000 units to manufacture.

Pardise Company Plans the Following Beginning and Ending Inventory Levels