Question
please help with the below question In order to keep production and sales moving smoothly, the company has the following inventory requirements: The finished goods
please help with the below question
In order to keep production and sales moving smoothly, the company has the following inventory requirements: The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 20% of the next month's sales.The company maintains no work in process inventories.
A monthly sales budget for Supermix for the third and fourth quarters of the year follows (note: the finished goods inventory on June 30 is budgeted to be 10,000 units.)
July 35,000;August 40,000;September 50,000;October 30,000;November 20,000;December 10,000
assist me developing a production budget for Supermix for the months July, August, September, and October. Why will the company produce more units than it sells in July and August, and fewer units than it sells in September and October?
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