Question
Kenner Company produces two products: SR200 and TX500. Budgeted sales for four months are as follows: May June July August SR200 TX500 8,000 20,000
Kenner Company produces two products: SR200 and TX500. Budgeted sales for four months are as follows: May June July August SR200 TX500 8,000 20,000 13,000 32,000 11,000 39,000 18,000 46,000 Kenner's ending inventory policy is that TX500 should have 40% of next month's sales in ending inventory. On May 1, there were 9,000 units of TX500. TX500 requires 6 units of Component A. (SR200 does not use Component A.) There were 30,000 units of Component A in inventory on May 1. Kenner wants to have 20% of the following month's production needs in inventory for Component A. How many units of TX500 are budgeted for production in June? 12,800 45,000 34,800 47,600 32,000
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