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Solution Library
Sartain Corporation : Calculate a company’s production of Product per annum
Question
Sartain 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) |
30,000 |
80,000 |
|
Raw material (grams) |
60,000 |
50,000 |
Each unit of finished goods requires 3 grams of raw material.
If the company plans to sell 770,000 units during the year, the number of units it would have to manufacture during the year would be:
a. 850,000 units
b. 770,000 units
c. 710,000 units
d. 820,000 units
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