Orange Corporation has budgeted sales of 23 comma 000 units, targeted ending finished goods inventory of 4 comma 000 units, and beginning finished goods inventory of 5 comma 000 units. How many units should be produced next year?
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Ответ:
22000 units
Explanation:
The movement in the balance of supplies at the start and end of a period is as a result of usage and purchases. While usage reduces the balance in supplies, purchases increase the balance. This may be expressed mathematically as
Opening balance + purchases/production - units used/sold = closing balance
Considering the equation above,
5000 + production -23000 = 4000
Production = 4000 + 23000 - 5000
= 22000 units
Ответ: