Question

Fiwrt Corporation manufactures and sells stainless steel coffee mugs. Expected mug sales Fiwrt (in units) for the next three months are as follows:
October November December
Budgeted unit sales 30,000 36,000 34,000
Fiwrt likes to maintain a finished goods inventory equal to 30% of the next month's estimated sales. How many mugs should Fiwrt plan on producing during the month of November?

Answer 1

Answer:

The number of mugs Fiwrt should plan on producing during the month of November is 35400 units of mugs.

Explanation:

Production unit (november) = Sale unit + Desired ending inventory-Beginning inventory

                                               = 36000 + (34000*30%) - (36000*30%)

                                              = 35400 Units

Therefore, The number of mugs Fiwrt should plan on producing during the month of November is 35400 units of mugs.