Berol Company plans to sell 180,000 units of the finished product in July and anticipates a growth rate in sales of 5% per month. The desired monthly ending inventory in units of the finished product is 80% of the next month's estimated sales. There are 150,000 finished units in inventory on June 30. Compute the production requirement in units of the finished product for July-October. (Marking Scheme: 2 marks each x 5 = 10 marks)

The beginning inventory in August is?

a.

168,000 units

b.

144,000 units

c.

150,000 units

The beginning inventory in September is?

a.

151,200 units

b.

150,000 units

c.

176,400 units

The Total Units Production for July is:

a.

174,000 units

b.

337800 units

c.

218,000 units

The Total Units Production for August is:

a.

196,200 units

b.

218,400 units

c.

234121 units

The Total Units Production for September is:

a.

234512 units

b.

240341 units

c.

206,010 units