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Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that

Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 29,000 units. June and July sales are estimated to be 290,000 and 300,000 units, respectively. Compute the number of units to be produced in June.

Multiple Choice

  • 320,000 units.

  • 297,100 units.

  • 261,000 units.

  • 290,000 units.

  • 291,000 units.

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