What is the production budget in units

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Reference no: EM132755885

Problem 1: The Ralston Company manufactures a special line of graphic tubing items. The company estimates it will sell 84,000 units of this item in 2020. The beginning finished goods inventory contains 29,000 units. The target for each year's ending inventory is 19,000 units. Each unit requires five feet of plastic tubing. The tubing inventory currently includes 83,500 feet of the required tubing. Materials on hand are targeted to equal 3 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?

Reference no: EM132755885

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