Pardee Company plans to sell 12,000 units during the month of August.If the company has 2,500 units on hand at the start of the month,and plans to have 2,000 units on hand at the end of the month,how many units must be produced during the month?
A) 11,500 units.
B) 12,000 units.
C) 12,500 units.
D) 14,000 units.

Question

Quizplus · Accepted Answer

To find the number of units to be produced, calculate the total units needed (units to be sold plus ending inventory) and subtract the beginning inventory: (12,000 units to be sold + 2,000 ending inventory) - 2,500 beginning inventory = 11,500 units.

Pardee Company Plans to Sell 12,000 Units During the Month