Answer:
Livingston Fabrication
The ending inventory for the month of September is:
= 600,000 units.
Explanation:
a) Data and Calculations:
August September October November December
Forecasted Demand (units of
finished goods): 1,500,000 1,500,000 2,000,000 3,000,000 500,000
Production Plan: 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Production capacity = 150 * 60 * 1,000 = 9,000,000 minutes
Minutes required by each assembly worker to assemble 1 unit = 5
Units that can be produced based on capacity = 1,800,000 units (9,000,000/5)
Schedule of Production, Sales, and Ending Inventory:
August September October November December
Beginning inventory 0 300,000 600,000 400,000 (600,000)
Units produced 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000
Demand 1,500,000 1,500,000 2,000,000 3,000,000 500,000
Ending inventory 300,000 600,000 400,000 (600,000) 700,000
