Question

Park Industries has 8000 units in beginning finished goods. The sales budget shows expected sales to...

Park Industries has 8000 units in beginning finished goods. The sales budget shows expected sales to be 29000 units. If the production budget shows that 34000 units are required for production, what was the desired ending finished goods?

A. 21,000

B. 13,000

C. 8,000

D. 3,000

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Answer #1

Answer: B. 13,000

Explanation

Desired ending finished goods = Beginning finished goods units + Units required for production - Expected sales units

= 8000 + 34000 - 29000

= 13,000

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