The Good Production Company makes darn good products that cost a lot of money. B
ID: 2372217 • Letter: T
Question
The Good Production Company makes darn good products that cost a
lot of money. Based on their production and sales history, their
policy is to end the month with 25 percent of the units that they
expect to sell in the following month.
Budgeted units sales for selected month are as
follows:
July 600 units
August 820 units
September 900 units
October 1,000 units
Assuming that the company started the month of July of 150 units
in beginning inventory, how many units must be produced in each of
the following months:
July
August
September
-Please show work!
Explanation / Answer
June July August September October
Budgeted unit sales 600 820 900 1000
Ending inventory 150 205 225 250
units to be produced 655 840 925
units to be produced in
July = 655 units
August = 840 units
September = 925 units
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