Question
The companys policy is to maintain a finished goods inventory equal to (50%) of the following months sales. Sales of 14,000 units are budgeted for
The companys policy is to maintain a finished goods inventory equal to (50%) of the following months sales. Sales of 14,000 units are budgeted for April.
Statements | January | February | March |
Sales in units | 10,000 | 8,000 | 12,000 |
Add: units of ending inventory | 4,000 | ? | ? |
Desired total units | 14,000 | ||
Less: desired units of beginning inventory | ? | ? | ? |
Total production units | 9,000 | ? | ? |
Instructions: (2 marks each)
Find the following items (show your calculations)
1. The units of ending inventory in February.
2. The units of ending inventory in March.
3. The units of beginning inventory in January.
4. The units of beginning inventory in February.
5. The units of beginning inventory in March.
6. The total production units in February.
7. The total production units in March.
The companys policy is to maintain a finished goods inventory equal to (50%) of the following months sales. Sales of 14,000 units are budgeted for April.
Statements | January | February | March |
Sales in units | 10,000 | 8,000 | 12,000 |
Add: units of ending inventory | 4,000 | ? | ? |
Desired total units | 14,000 | ||
Less: desired units of beginning inventory | ? | ? | ? |
Total production units | 9,000 | ? | ? |
Instructions: (2 marks each)
Find the following items (show your calculations)
1. The units of ending inventory in February.
2. The units of ending inventory in March.
3. The units of beginning inventory in January.
4. The units of beginning inventory in February.
5. The units of beginning inventory in March.
6. The total production units in February.
7. The total production units in March.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started