Answer:
c. 38,200 units
Explanation:
The movement in the inventory account will be due to sales and production. Sales reduces the inventory balance while production increases it.
Given
budgeted sales of 36,000 units,
target ending finished goods inventory of 4,000 units,
and beginning finished goods inventory of 1,800 units
Let the units to be produced be t
1800 + t - 36000 = 4000
t = 4000 + 36000 - 1800
t = 38,200
38,200 units should be produced next year.
