Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Beginning Inventory Ending Inventory Finished goods (units) 28,000 78,000 Raw material (grams) 58,000 48,000 Each unit of finished goods requires 2 grams of raw material. The company plans to sell 750,000 units during the year The number of units the company would have to manufacture during the year would be: Multiple Choice
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Question & Answer: Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory le…..
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C. 800,000 units
Units produced = Ending inventory + Units sold – Beginning inventory
= 78,000 + 750,000 – 28,000
= 800,000 units