1.The quarterly production requirements for product A are shown below. 2% of production fails the quality control checks and must be scrapped. How many items of product A must be manufactured to allow for waste?

	Quarter 1	Quarter 2	Quarter 3
Required units	36,456	42,140	49,000
Manufactured units

2.Complete the following production forecast. Closing inventory should be 10% of the following month's forecast sales.

Number of units	Jan	Feb	Mar	Apr
Opening inventory	80
Production
Sub-total
Sales	1000	1050	1200	1270
Closing inventory

3.

Complete the following production forecast for XYZ Ltd, who operate a 25 day period. Closing inventory should be equivalent to 5 days' sales volume of the following period.

Number of units	Period 1	Period 2	Period 3	Period 4
Opening inventory	13,200
Production
Sub-total
Sales	69,000	70,000	72,000	72,500
Closing inventory

4.A business has budgeted sales for the following period of 2,800 units of product X. The inventory at the start of the period is 450 units, and this is to be reduced to 390 units at the end of the period. What is the production quantity for the period?

	2740
	2860
	3640
	2800

5.A new business has budgeted sales volumes for its first and second quarters of product Aye of 37,000 units and 38,000 units respectively. Closing inventory should be equivalent to 25% of the following month's forecast sales. What is the production quantity for its first quarter?

	47500
	46500
	46250

6.The monthly production requirements for product Exe are shown below. 4% of production fails the quality control checks and must be scrapped. How many items of product A must be manufactured to allow for waste?

	Quarter 1	Quarter 2	Quarter 3
Required units	33,600	34,320	36,456
Manufactured units

7.A business has budgeted sales of 9,500 units and 9,800 units of product Zed for November and December respectively. The inventory at the start of November is 870 units and closing inventory should be equivalent to 12% of the following month's forecast sales. What is the production quantity for November?

	9230
	9770
	9806
	9194

8.A business operates a 20 day period. It has budgeted sales of 3,500 units and 3,600 units of product Wye for periods 1 and 2 respectively. The inventory at the start of period 1 is 1,050 units. The production manager has decided he wants to start holding closing inventory equivalent to just 5 days' sales volume of the next period. The closing inventory at the end of period 1 will be Please Select 875 _ 900 _ 600 _ 584 and the production volume for period 1 will be Please Select3,650_ 3350 _1,550_ 3,650 units.

9.ABC Ltd has budgeted sales of 12,000 units and 12,400 units of their product for quarters 1 and 2 respectively. The inventory at the start of quarter 1 is 2,100 units. The closing inventory at the end of quarter 1 should be 20% of the following quarter's forecast sales volume. The production volume for quarter 1 will be Please Select 12,380_ 11,700 _11,620_ 12,300 units.

10.Complete the following production forecast. Closing inventory should be 15% of the following quarter's forecast sales.

Number of units	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Opening inventory	7,000
Production
Sub-total
Sales	46,800	47,500	48,000	50,000
Closing inventory