please explain the answer in green

MANAGEMENT ACCOUNTING Mark attempt BUDGETING - BASIC INVENTORY MANAGEMENT The following is the forecast level of inventory (in units) for Pat LaFontaine Pty Ltd. Work in process - end of year Work in process - start of year Finished goods - start of year Finished goods - end of year 40,000 42,000 37,000 31,000 Create new question This year Pat plans to sell 380 000 units. REQUIRED: 1. How many units will Pat need to produce this year? 374,000