Mozart Enterprises budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Inventory Ending Inventory Raw material 85,000 Finished goods 220,000 105,000 170,000 Two pounds of raw material are needed to produce each unit of finished product. If Mozart Enterprises plans to sell 860,000 units during next year, the number of units it would have to manufacture during the year would be: a. 720,000 units b. 810,000 units c. 910,000 units d. 780,000 units

Mozart Enterprises budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Inventory Ending Inventory Raw material 85,000 Finished goods 220,000 105,000 170,000 Two pounds of raw material are needed to produce each unit of finished product. If Mozart Enterprises plans to sell 860,000 units during next year, the number of units it would have to manufacture during the year would be: a. 720,000 units b. 810,000 units c. 910,000 units d. 780,000 units

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 10Q: If the sales forecast estimates that 50,000 units of product will be sold during the following year,...

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If the sales forecast estimates that 50,000 units of product will be sold during the following year, should the factory plan on manufacturing 50,000 units in the coming year? Explain.
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