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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.


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