Question
ABC Company produces water pumps. The unit sales for the first four months of the year for this product are as follows: Unit Sales: January
ABC Company produces water pumps. The unit sales for the first four months of the year for this product are as follows:
Unit Sales:
January 144,000
February 176,000
March 160,000
April 192,000
Company maintains ending inventory for each month at 25% of next month's sales. However, at the beginning of January, due to greater sales in December than anticipated, the beginning inventory for January is 16,800
Required:
a) Compute the total number of units that should be produced for the months of January, February and March. Find the Total units to be produced for the 1st quarter
b) ABC Company makes wallets and the planned production (4 Marks) in units for the first three months of the following year are:
January 21,900
February 20,500
March 25,100
Additional information is as follows:
Average wage per hour $21.60
Direct labor hour for each wallet 0.45
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