Answer (D) is correct . The finished units needed are calculated as follows: Needed for sales 1,800 Needed for ending inventory 100 ? Total finished units needed 1,900 Less:? Beginning inventory (85) Finished units needed 1,815 The units to be produced are calculated as follows: Finished units needed 1,815 Needed for ending inventory 40
Answer (A) is incorrect because The figure of 1,800 equals projected unit sales. Answer (B) is incorrect because Units needed for sales minus all inventory amounts equals 1,565. Answer (C) is incorrect because Finished units needed equals 1,815.
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