If Wiggle Corp has beginning inventory of 100 units, projected sales of 400 units, and desired ending inventory of 200 units, production must be planned for 300 units.

Question

Quizplus · Accepted Answer

To determine the production planning, we need to calculate the net requirements which would be:
Projected Sales + Desired Ending Inventory – Beginning Inventory = Net Requirements
400 + 200 - 100 = 500
Therefore, the production planning should be for 500 units, not 300 units.

If Wiggle Corp Has Beginning Inventory of 100 Units, Projected