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Ardel Co. budgeted to sell 218,000 units of Zbox in September. Production of one unit of Zbox requires two pounds of aluminum and five pounds of steel powder. The beginning inventory and the desired ending inventory (in units) are as follows:

Beginning Inventory Desired Ending Inventory
Zbox 24,000 13,000
Aluminum 30,000 23,000
Steel powder 26,000 31,000

How many units of Zbox are to be manufactured by Adel Co. during September?

A. 150,000.
B. 189,000.
C. 200,000.
D. 201,000.
E. 202,000.

Respuesta :

Answer:

207,000

Explanation:

Data provided

Sold units = 218,000

Ending inventory = 13,000

Opening units = 24,000

The computation of units during September is shown below:-

Number of units manufactured during the year = Sold units + Ending inventory - Opening units

= 218,000 + 13,000 - 24,000

= 231,000 - 24,000

= 207,000

Therefore for computing the number of units manufactured during the year we simply applied the above formula.

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