Beginning Inventory Ending Inventory Raw material* 59,000 69,000 Finished goods 99,000 69,000 * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 575,000 units during next year, the number of units it would have to manufacture during the year would be:

Paradise Corporation

The number of units it would have to manufacture during the year would be:

545,000 units

Explanation:

a) Data and Calculations:

                 Beginning Inventory      Ending Inventory

Raw material       59,000                       69,000

Finished goods   99,000                       69,000

Raw materials for one unit of finished product = 3 pounds

Budgeted Sales = 575,000 units

Units to be manufactured during the year =

Ending Inventory of finished goods      69,000 units

Units of goods to sale during period  575,000 units

Units available for sale                        644,000 units

less Beginning Inventory of finished    99,000 units

Units to manufacture or produce       545,000 units

b) The units to manufacture is the difference between the Units available for sale (which is made up of ending inventory of finished goods (units) and the units of goods to be sold) minus the units at the beginning of the period.

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explanation:

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