Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year.| Inventory Type | Beginning Inventory | Ending Inventory ||-------------------|---------------------|------------------|| Raw material* | 30,000 | 40,000 || Finished goods | 70,000 | 60,000 |* Three pounds of raw material are needed to produce each unit of finished product.If Paradise Corporation plans to sell 510,000 units during next year, the number of units it would have to manufacture during the year would be:a. 500,000 units b. 520,000 units c. 510,000 units d. 570,000 units

The units to be manufactured are calculated as sum of budgeted sales units and ending inventory and subtracting beginning inventory.Calculation of finished units to manufacture during periodBudgeted sales510,000 units+ Ending inventory60,000 unitsTotal units required570,000 units- Beginning inventory(70,000) unitsUnits to be manufactured500,000 unitsHence, option a. 500,000 units is correct value.Budgeted Production = 500,000 units

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Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. a. b. Raw material* Finished goods C. d. Beginning Inventory 500,000 units 520,000 units 510,000 units 570,000 units 30,000 70,000 * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 510,000 units during next year, the number of units it would have to manufacture during the year would be: Ending Inventory 40,000 60,000

Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. a. b. Raw material* Finished goods C. d. Beginning Inventory 500,000 units 520,000 units 510,000 units 570,000 units 30,000 70,000 * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 510,000 units during next year, the number of units it would have to manufacture during the year would be: Ending Inventory 40,000 60,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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