Question
January : 20,000 units February: 35,000 units March: 35,000 units April: 45,000 units May: 60,000 units June: 75,000 units July: 75,000 units August: 80,000 units
January : 20,000 units
February: 35,000 units
March: 35,000 units
April: 45,000 units
May: 60,000 units
June: 75,000 units
July: 75,000 units
August: 80,000 units
September: 65,000 units
October: 50,000 units
November: 25,000 units
December: 15,000 units
(A). The company wants ending inventory to be equal to 25% of the following month's
estimated sales in units.
(B). The company purchases 60% of its inventory in the month prior to the month of sale,
keeping it in the ending inventory, and 40% in the month of sale. Payment for inventory in made in
the month following the purchase.
What will be the production budget of third quarter
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