Question
Custom Embroidering, Inc. (CEI) manufactures baseball hats with the Arizona State University Sun Devil logo embroidered on the hats. Even though the baseball hats come
Custom Embroidering, Inc. (CEI) manufactures baseball hats with the Arizona State University Sun Devil logo embroidered on the hats. Even though the baseball hats come in a variety of colors, the hats are considered to be a single product. Each hat sells for $20 and CEI has forecasted quarterly sales for 2020 are as follows:
1st Quarter $150,000 7,500 2nd Quarter $200,000 10,000 3rd Quarter $225,000 11,250 4th Quarter $175,000 8,750 Finished goods inventory is maintained at 50% of the following quarters sales. How many units need to be produced during the first quarter 2020? (The January 1, 2020 beginning inventory is 3,750 units)
a. 8750
b. 16,500
c.6,250
d. 12,500
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