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3 February, 08:06

Production and sales estimates for June are as follows:

Estimated inventory (units), June 1 18,500

Desired inventory (units), June 30 19,000

Expected sales volume (units):

Area X 3,000

Area Y 4,000

Area Z 5,500

Unit sales price $20.

The number of units expected to be manufactured in June is:

a. 10,000.

b. 12,000.

c. 13,000.

d. 12,500.

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Answers (1)
  1. 3 February, 11:04
    0
    Production = 13,000

    Explanation:

    Giving the following information:

    Estimated inventory (units), June 1 18,500

    Desired inventory (units), June 30 19,000

    Expected sales volume (units):

    Area X 3,000

    Area Y 4,000

    Area Z 5,500

    Total = 12,500

    To calculate the production for the period, we need to use the following formula:

    Production = sales + desired ending inventory - beginning inventory

    Production = 12,500 + 19,000 - 18,500

    Production = 13,000
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