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The Lippart Company expects sales in 2021 of 207,000 units of serving trays

Accounting

The Lippart Company expects sales in 2021 of 207,000 units of serving trays. Lippart's beginning inventory for 2021 is 18,000 trays, and its target ending inventory is 25,000 trays. Compute the number of trays budgeted for production in 2021. Select the labels and enter the amounts to calculate the units of finished goods (trays) to be produced. Units of finished goods to be produced
Budgeted unit sales Total required units
Add beginning finished goods inventory Add target ending finished goods inventory Deduct beginning finished goods inventory Deduct target ending finished goods inventory

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Compute the number of trays budgeted for production in 2021 as follows:

Budgeted unit sales 207,000
Add: Target ending finished goods inventory 25,000
Total required units 232,000
Deduct: Beginning finished goods inventory 18,000
Required production units 214,000

Therefore, the number of trays budgeted for production is 214,000 trays.