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The following is the forecast level of inventory (in units) for Aardvark Ltd: Question 8 Not yet answered Marked out of 1.00
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Answer #1

Finished goods, opening = 20,000 units

Finished goods, closing = 15,000 units

Sales = 320,000 units

Number of units to be produced = Sales + Finished goods, closing - Finished goods, opening

= 320,000+15,000-20,000

= 315,000 units

Work in process inventory opening and work in process inventory closing are not required while calculating number of units to be produced. Hence, work in process has been ignored.

Correct option is e.

Kindly comment if you need further assistance.

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