Question

In a production budget, if the number of units expected to be sold during the year is 8,000, the number of units desired in ending inventory is 470 units, and the number of units in beginning inventory is 510 units, the total production for the year is

Answer 1

Production= 7,960 units

Step-by-step explanation:

Giving the following information:

Sales= 8,000 units

Desired ending inventory= 470 units

Beginning inventory= 510 units

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

Production= sales + desired ending inventory - beginning inventory

Production= 8,000 + 470 - 510

Production= 7,960 units