Question

Production and sales estimates for June are as follows:

Estimated inventory (units), June 1	20,000
Desired inventory (units), June 30	19,000
Expected sales volume (units):
Area X	7,000
Area Y	4,000
Area Z	5,500
Unit sales price	$20

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

Units to be produced are equal to:

a. 11,000

b. 12,500

c. 15,500

d. 13,500

Answer 1

--Correct Answer = Option 'C' 15,500 units

A	Total units to be sold	16,500
B	Desired inventory 30 June	19,000
C = A+B		35,500
D	Beginning inventory 1 June	20,000
E = C- D	Units to be produced	15,500 [Answer]