If the opening inventory is 100 units, sales are 500 units, and the ending inventory is 200 units, how many units will manufacturing produce?

If the opening inventory is 100 units, sales are 500 units, and the ending inventory is 200 units, how many units will manufacturing produce?

• A. 300 units
• B. 400 units
• C. 500 units
• D. 600 units

Answer: (D)

To determine how many units manufacturing needs to produce, you can apply the basic inventory equation that relates opening inventory, production, sales, and ending inventory. The equation can be stated as: Opening Inventory + Production - Sales = Ending Inventory. In this scenario, you have an opening inventory of 100 units, sales of 500 units, and an ending inventory of 200 units. Plugging these values into the equation, we have: 100 + Production - 500 = 200. To solve for production, rearranging the equation gives us: Production = 200 + 500 - 100. Thus: Production = 600 units. This calculation shows that manufacturing must produce 600 units to cover the sales while also accounting for the increase in ending inventory. Since all the given sales and inventory figures have been factored into the equation, the final result reflecting 600 units allows the company to meet its sales goal while also ensuring that it has the necessary inventory available for future needs.

To determine how many units manufacturing needs to produce, you can apply the basic inventory equation that relates opening inventory, production, sales, and ending inventory. The equation can be stated as:

Opening Inventory + Production - Sales = Ending Inventory.

In this scenario, you have an opening inventory of 100 units, sales of 500 units, and an ending inventory of 200 units. Plugging these values into the equation, we have:

100 + Production - 500 = 200.

To solve for production, rearranging the equation gives us:

Production = 200 + 500 - 100.

Thus:

Production = 600 units.

This calculation shows that manufacturing must produce 600 units to cover the sales while also accounting for the increase in ending inventory.

Since all the given sales and inventory figures have been factored into the equation, the final result reflecting 600 units allows the company to meet its sales goal while also ensuring that it has the necessary inventory available for future needs.