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A sales budget is given below for one of the products manufactured by the Key Company: January 36,800 units February 21,000 units March 61,000 units

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A sales budget is given below for one of the products manufactured by the Key Company: January 36,800 units February 21,000 units March 61,000 units April 41,060 units May 31,000 units June 25,000 units The inventory of finished goods at the end of each month should equal 20% of the next month's sales, However, on December 31 the finished goods inventory totaled only 4,000 units. Each unit of product requires four (4) specialized electrical switches. Since the production of these specialized switches by Key's suppliers is sometimes irregular the company has a policy of maintaining an ending inventory at the end of each month equal to 30%% of the next month's production needs. This requirement had been met on January 1 of the current year. Required: (To receive full credit for an answer, you must show your work) 5 pts each a. What is the required number of units that need to be prepared in February? b. What is the total amount of required purchases for January? Essay Toolbar navigation

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