Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Month 1: Sales: 10,000 units Desired ending inventory: Beginning inventory (7,000 units) + 5,000 units = 12,000 units Total needed: Sales + Desired ending inventory

Month 1: Sales: 10,000 units Desired ending inventory: Beginning inventory (7,000 units) + 5,000 units = 12,000 units Total needed: Sales + Desired ending inventory = 10,000 units + 12,000 units = 22,000 units Quantity to be produced: Total needed - Beginning inventory = 22,000 units - 7,000 units = 15,000 units Month 2: Sales: 11,000 units Desired ending inventory: Previous month's ending inventory (12,000 units) + 5,000 units = 17,000 units Total needed: Sales + Desired ending inventory = 11,000 units + 17,000 units = 28,000 units Quantity to be produced: Total needed - Previous month's ending inventory = 28,000 units - 12,000 units = 16,000 units Month 3: Sales: 12,000 units Desired ending inventory: Previous month's ending inventory (17,000 units) + 5,000 units = 22,000 units Total needed: Sales + Desired ending inventory = 12,000 units + 22,000 units = 34,000 units Quantity to be produced: Total needed - Previous month's ending inventory = 34,000 units - 17,000 units = 17,000 units So, the total quantity to be produced during the quarter is the sum of the quantities to be produced each month: 15,000 units (Month 1) + 16,000 units (Month 2) + 17,000 units (Month 3) =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting For MBAs

Authors: Peter D. Easton

6th Edition

1618533592, 9781618533593

Students also viewed these Accounting questions