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Question

hasaSMT2 Formulas Data ReviewView Arial ) Wrap Text i.A.] ???|[?? 1 ule.si, ? [tri @wg. & Center , s-% , a . To keep up-to-date wilth security updates, fixes, and improvernents, choose Check for Updates. You may use space below the question to show calculations. Please put correct answer in the underlined space provided ABC Company produces art sketch books. The unit sales for the following four months of the year for the product: April 144,000 192,000 211,200 Ending inventory policy 15.00% of next month sales Due to greater sales in March than anticipated, the Company's beginning inventory of April is at 11,520 Required: Compute the number of units that should be produced during a) (4 Marks) the second quarter 01 02 04 07

Explanation / Answer

Ans. For the month of April: Units Sales       144,000 Add: Ending inventory (15% of 192,000)          28,800       172,800 Less: Opening Inventory          11,520        Number of units produced       161,280 For the month of May: Units Sales       192,000 Add: Ending inventory (15% of 211,200)          31,680       223,680 Less: Opening Inventory          28,800        Number of units produced       194,880 For the month of June: Units Sales       211,200 Add: Ending inventory (15% of 192,000)          28,800       240,000 Less: Opening Inventory          31,680        Number of units produced       208,320 Total number of units to produced during the second quarter is: No. of Units = 161,280 + 194,880 + 208,320 =        564,480

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