Answer:
Results are below.
Explanation:
Giving the following information:
Sales:
April 82,000
May 90,000
June 122,000
July 96,000
Desired ending inventory= 15% of the following month's unit sales.
The inventory at the end of March was 12,300 units
<u>To calculate the production required, we need to use the following formula:</u>
Production= sales + desired ending inventory - beginning inventory
<u>April:</u>
Sales= 82,000
Desired ending inventory= 90,000*0.15= 13,500
Beginning inventory= (12,300)
Total production= 83,200
<u>May:</u>
Sales= 90,000
Desired ending inventory= 122,000*0.15= 18,300
Beginning inventory= (13,500)
Total production= 94,800
<u>June:</u>
Sales= 122,000
Desired ending inventory= 96,000*0.15= 14,400
Beginning inventory= (18,300)
Total production= 118,100
