Vaviano Ltd Expects to Sell 34,000 Units of Finished Goods

question 67

Multiple Choice

Vaviano Ltd expects to sell 34,000 units of finished goods over the next 6-month period. The company has 10,000 units on hand and its managers want to have 14,000 units on hand at the end of the period. To produce one unit of finished product, two units of direct materials are needed. Vaviano has 100,000 units of direct material on hand and has budgeted for an ending inventory of 110,000 units. What is the number of finished units to be produced?

• A) 38,000
• B) 28,000
• C) 34,000
• D) 24,000

---

Definitions:

Specific Performance

A legal remedy requiring a party to execute a contract according to its precise terms.

Breach

The violation or non-fulfillment of a legal obligation, contract, or agreement.

Sale of Land

The legal process in which the ownership of immovable property is transferred from one party to another.

Invalid

Not legally or factually sound; without force or effect.