The Adam Company manufactures a special line of graphic tubing items. The company estimates it will sell 750,000 units of this item in 2020. The beginning finished goods inventory contains 200,000 units. The target for each year's ending inventory is 100,000 units. Each unit requires five feet of plastic tubing. The tubing inventory currently includes 700,000 feet of the required tubing. Materials on hand are targeted to equal three months' production. Any shortage in materials will be made up by the immediate purchase of materials. Sales take place evenly throughout the year. What is the production budget (in units) for 2020?

The Adam Company manufactures a special line of graphic tubing items. The company estimates it will sell 750,000 units of this item in 2020. The beginning finished goods inventory contains 200,000 units. The target for each year's ending inventory is 100,000 units. Each unit requires five feet of plastic tubing. The tubing inventory currently includes 700,000 feet of the required tubing. Materials on hand are targeted to equal three months' production. Any shortage in materials will be made up by the immediate purchase of materials. Sales take place evenly throughout the year. What is the production budget (in units) for 2020?

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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