Paradise Corporation budgets on an annual basis for its fiscal year.The following beginning and ending inventory levels (in units)are planned for next year. *Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 480,000 units during next year,the number of units it would have to manufacture during the year would be:
A)440,000 units
B)480,000 units
C)510,000 units
D)450,000 units

Question

Paradise Corporation budgets on an annual basis for its fiscal year.The following beginning and ending inventory levels (in units)are planned for next year.  *Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 480,000 units during next year,the number of units it would have to manufacture during the year would be:
A)440,000 units 
B)480,000 units 
C)510,000 units 
D)450,000 units

Quizplus · Accepted Answer

Finished goods:
Beginning inventory + Units produced = Ending inventory + Units sold
80,000 + Units produced = 50,000 + 480,000
Units produced = 50,000 + 480,000 - 80,000 = 450,000

Paradise Corporation Budgets on an Annual Basis for Its Fiscal