Question

Concord Corporation has 34000 units in beginning finished goods. If sales are expected to be 140000 units for the year and Concord desires ending finished goods of 40000 units, how many units must the company produce

Answer 1

146,000 units

Explanation:

The computation of units must the company produce is shown below:-

As we know that

Units sold = opening inventory + units produced - Closing inventory

So,

Units Produced = Units sold - opening inventory + Closing inventory

= 140,000 - 34,000 + 40,000

= 146,000 units

Hence, the number of units produced by the company is 146,000 units