Question
On September 30 of Year 1, Abinadi Company had finished goods inventory of 2,200 units. Starting in October, Abinadi intends to have an inventory policy
On September 30 of Year 1, Abinadi Company had finished goods inventory of 2,200 units. Starting in October, Abinadi intends to have an inventory policy of maintaining ending inventory at the end of every month equal to the next two months of sales. For example, ending inventory at the end of October should be equal to the forecasted sales in November and December. Forecasted sales for the months October, Year 1 through January, Year 2 are as follows:
October 6,000: units November: 4,500 units December: 8,500 units January: 2,000 units What is the amount of budgeted PRODUCTION for November?
Group of answer choices
10,500 units
0 units
2,000 units
7,000 units
8,500 units
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