Four questions use this data: ELT Corporation, which makes only one product, Yes

Question

Four questions use this data: ELT Corporation, which makes only one product, Yester, has the following information available for the coming year. ELT expects sales to be 27,000 units at $32 per unit. The current inventory of Yester is 3,500 units. ELT wants an ending inventory of 4.200 units. Each unit of Yester takes two units of component K Component K is estimated to cost $9 per unit. Current inventory of K is 3,900 units. ELT wants 5,800 units of K on hand at the end of the next year How many units will the production budget show to be produced for the coming year? $31,200 $27,700 $27,000 $26,300

Explanation / Answer

no of units to be produced

cost of goods sold= Beg inv+production-ending inventory

27000=3500+x-4200

x=27000-3500+4200=27700 units

It is option B

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