Question

Data for month of my.opening stock is 90 units and sales is 700units.if closing stock has to be 60%higher than the opening stock then production will be

Answer 1

If closing stock has to be 60%higher than the opening stock then production will be 754 units

Explanation:

The formula to compute the production units is shown below:

= Expected Sale units + ending stock units - beginning stock units

where,

Expected sales units = 700 units

Ending stock is

= 90 units + 90 units  × 60%

= 90 units + 54 units

= 144 units

And, the opening stock is 90 units

So, the production units are

= 700 units + 144 units - 90 units

= 754 units

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