Frame-It's production manager attempts to end each quarter with enough finished-goods inventory in each product line to cover 25 percent of the following quarter's sales. At December 31, 2023 the finished-goods inventory of S Frames and L Frames was estimated at 11,000 and 9,000 units respectively. 5. Moreover, an attempt is made to end each quarter with 20 percent of the glass sheets needed for the following quarter's production. Based on that assumption, it was estimated that there would be 7,400 glass sheets in raw materials inventory at December 31, 2023. Because metal strips are purchased locally, Frame-It buys them on a just-in-time basis; inventory is negligible so there is no requirement to have any additional quantity on hand to begin the next quarter's production