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Trava [24]
3 years ago
8

The management of Nicto Company plans to have an inventory at the end of each month equal to 30% of the next month's sales. Budg

eted sales in units over the next three months are 87,000 in October, 127,000 in November, and 107,000 in December. Budgeted production for November would be:
Business
1 answer:
Rina8888 [55]3 years ago
3 0

Answer:

Production= 121,000

Explanation:

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

Production= sales + desired ending inventory - beginning inventory

Production=  127,000 + (107,000*0.3) - (127,000*0.3)

Production= 127,000 + 32,100 - 38,100

Production= 121,000

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