Homework Answers
Units that Delsing need to produce is computed as follows:
Opening inventory = 25,500 units
Sales = 73,000 units
Ending inventory = 25,500 x 25%
= 6,375
So the units that should be produced will be
Opening inventory + Production - Ending inventory = Sales
Production = 73,000 - 25,500 + 6,375
= 53,875 units
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