Answered

Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Explore thousands of questions and answers from knowledgeable experts in various fields on our Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

A company budgeted unit sales of 204,000 units for January, 2013 and 240,000 units for February 2013. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales. If there were 61,200 units of inventory on hand on December 31, 2012, how many units should be produced in January, 2013 in order for the company to meet its goals

Sagot :

Answer: 214800

Explanation:

The number of units that should be produced in January, 2013 in order for the company to meet its goals will be:

= Budgeted sales + Ending inventory - Beginning inventory

= 204000 + (240000 × 30%) - 61200

= 204000 + 72000 - 61200

= 214800

Therefore, 214800 units should be produced.

We appreciate your time. Please come back anytime for the latest information and answers to your questions. We hope this was helpful. Please come back whenever you need more information or answers to your queries. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.