Answer (D) is correct . If the company sells 480,000 units with an ending finished goods inventory of 50,000 units, 530,000 units must be available. Given 80,000 units are in beginning inventory, production will have to be 450,000 units (530,000 – 80,000).
Answer (A) is incorrect because The calculation need not be adjusted for the change in work-in-process. Only finished goods are being discussed. Answer (B) is incorrect because The amount to be sold is 480,000 units. Answer (C) is incorrect because The number of 510,000 units equals sales, plus beginning inventory, minus ending inventory.
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