Unger Company Has 12,000 Units in Beginning Finished Goods

question 50

Multiple Choice

Unger Company has 12,000 units in beginning finished goods. If sales are expected to be 60,000 units for the year and Unger desires ending finished goods of 15,000 units, how many units must the company produce?

• A) 57,000
• B) 60,000
• C) 63,000
• D) 75,000

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often referred to as shareholders' equity or owners' equity.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

No-Par Common Stock

No-Par common stock is stock issued without a par value, meaning its value is determined by the price investors are willing to pay in the market, rather than a set face value.

Stated Value

Stated value refers to a fixed per-share value assigned by a corporation to its no-par value stock, often used in accounting and financial reporting.