18. Sherwin Paperboard Company expects to sell 600 units in January, 700 units in February, and 1,200

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18. Sherwin Paperboard Company expects to sell 600 units in January, 700 units in February, and 1,200 units in March. January’s ending inventory is 800 units.

Expected sales for the whole year are 12,000 units. Sherwin has decided on a level production schedule of 1,000 units (12,000 units/12 months = 1,000 units per month). What is the expected end-of-month inventory for January, February, and March? Show the beginning inventory, production, and sales for each month to arrive at ending inventory.

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Foundations Of Financial Management

ISBN: 9780073382388

13th Edition

Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen

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