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Kenner Company produces two products: SR200 and TX500. Budgeted sales for four months are as follows: May June July August SR200 8,000 13,000 11,000 18,000
Kenner Company produces two products: SR200 and TX500. Budgeted sales for four months are as follows: May June July August SR200 8,000 13,000 11,000 18,000 TX500 20,000 32,000 39,000 46,000 Kenner's ending Inventory policy is that SR200 should have 15% of next month's sales in ending inventory and TX500 should how inventory. On May 1, there were 1,200 units of SR200 and 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 inventa of the following month's production needs in Inventory for Component A. What is the desired ending Inventory of Component A fou a. 180,000 b. 53,500 C. 41,760 d. 86,000 30,000
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