Luna Company manufactures watches and has a JIT policy that ending inventory must equal 8 of the next months sales It estimates that Octobers actual ending inventory will consist of 24,000 watches November and December sales are estimated to be 300,000 and 250,000 watches, respectively Compute the ...

Luna Company Production Budget For Month Ended November 30 Next ...

Luna Company manufactures watches and has a JIT policy that ending inventory must equal 8% of the

Question:

Luna Company manufactures watches and has a JIT policy that must equal 8% of the next month’s sales. It estimates that October’s actual will consist of 24,000 watches. November and December sales are estimated to be 300,000 and 250,000 watches, respectively. Compute the number of watches to be produced that would appear on the company’s production budget for the month of November.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...