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Paradise Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1 through June 30: July 1 June 30 40,000 50,000 10,000 20,000 Finished goods 80,000 50,000 * Two units of direct material are needed to produce each unit of finished product. Direct material* Work-in-process If Paradise Company plans to sell 480,000 units during the fiscal year, the number of units it will have to manufacture during the year is A. 450,000 units. 480,000 units. C. 510,000 units. B. D. 440,000 units.

Paradise Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1 through June 30: July 1 June 30 40,000 50,000 10,000 20,000 Finished goods 80,000 50,000 * Two units of direct material are needed to produce each unit of finished product. Direct material* Work-in-process If Paradise Company plans to sell 480,000 units during the fiscal year, the number of units it will have to manufacture during the year is A. 450,000 units. 480,000 units. C. 510,000 units. B. D. 440,000 units.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 2E: The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units....
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Fact Pattern: Paradise Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1 through June 30: Direct material* Work-in-process July 1 40,000 10,000 80,000 Finished goods * Two units of direct material are needed to produce each unit of finished product. If Paradise Company plans to sell 480,000 units during the fiscal year, the number of units it will have to manufacture during the year is A. 450,000 units. O B. 480,000 units. 510,000 units. C. O D. June 30 50,000 20,000 50,000 440,000 units.
Transcribed Image Text:Fact Pattern: Paradise Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1 through June 30: Direct material* Work-in-process July 1 40,000 10,000 80,000 Finished goods * Two units of direct material are needed to produce each unit of finished product. If Paradise Company plans to sell 480,000 units during the fiscal year, the number of units it will have to manufacture during the year is A. 450,000 units. O B. 480,000 units. 510,000 units. C. O D. June 30 50,000 20,000 50,000 440,000 units.
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