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IRINA_888 [86]
2 years ago
10

Meadow Company produces hand tools. A sales budget for the next four months is as follows: March 10,800 units, April 13,300, May

16,100 and June 21,200. Meadow Company’s ending finished goods inventory policy is 20% of the following month’s sales. March 1 beginning inventory is projected to be 2,160 units. How many units will be produced in March?
Business
1 answer:
elixir [45]2 years ago
8 0

Answer:

Production= 11,300 units

Explanation:

Giving the following information:

Sales:

March 10,800 units

April 13,300

Meadow Company’s ending finished goods inventory policy is 20% of the following month’s sales.

March 1 beginning inventory is projected to be 2,160 units.

<u>To calculate the production for March, we need to use the following formula</u>:

Production= sales + desired ending inventory - beginning inventory

Production= 10,800 + (13,300*0.2) - 2,160

Production= 11,300 units

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