Answer:
1. $13,240
2. 16,000 units
3. 22,000 units.
Explanation:
The question is answered as follows
Part 1: Determine the total sales for the first quarter as follows
January Sales in Units = 400 Units
February Sales Units = 400 x 110% or 1.1= 440 units
March Sales Unites = 440 x 110% or 1.1. = 484 units
Total Sales = 1,324 x $10 = $13, 240
Part 2: Determine Production In August
Production in August making use of the relevant figures
= Expected units + (Expected units in september x 80%) - Inventory on August 1
= 12,000 + (0.8 x 15,000) - 8000= 16,000 Units
Part 3: Determine the Production Units as follows
Sales Units + Closing Inventory of finished goods - The Opening Inventory of finished goods
= 20,000 units + 5,000 units - 3000 units = 22,000 units
