Question

Marvel Woodcraft makes furniture. Marvel’s expected sales are 20,000 bookcases for the quarter. The company begins the quarter with inventory of 3,000 bookcases and wants to have enough finished bookcases on hand at the end of the quarter to provide for 15% of the next quarter’s expected sales of 24,000 bookcases. Based on this information, how many bookcases need to be produced during the quarter?

Answer 1

Answer:

Total production= 20,600 units

Explanation:

Giving the following information:

Marvel’s expected sales are 20,000 bookcases for the quarter. The company begins the quarter with an inventory of 3,000 bookcases and wants to have enough finished bookcases on hand at the end of the quarter to provide for 15% of the next quarter’s expected sales of 24,000 bookcases.

Sales= 20,000 units

Ending inventory= (24,000*0.15)= 3,600

Beginning inventory= 3,000 (-)

Total production= 20,600 units