Problem 4 Sunny produces motor bikes in California. The projected sales for the

Question

Problem 4 Sunny produces motor bikes in California. The projected sales for the four quarters of the new year are as follows: QTR 1 QTR 2: QTR 3: QTR 4: 80,000 1.5 more than QTR 1 10% more than QTR 2 The average of QTR1 and QTR 2 sales. Sunny desires to maintain monthly ending inventory equal to 10% of next months expected QTR4 of last year recorded sales of 70,000 Required: Fill in the missing activity steps 1) 2) Fill out the table for values for the steps for both QRT1 and QRT 2 Activity Steps QTR1QTR 2 Sales Units to Produce

Explanation / Answer

Sales in Q2 = 1.5 times of Q1 = 80,000x1.5

Opening inventory of Q1 = 10% of expected sales of Q1 = 80,000x10%

Closing inventory of Q1 = 10% of expected sales of Q2 = 120,000x10%

Opening inventory of Q2 = 10% of expected sales of Q2 = 120,000x10%

Closing inventory of Q2 = 10% of expected sales of Q3 = 132,000x10%

Production Quantity = Sales qty + closing qty - Opening qty

Q1 Q2 Sales            80,000           1,20,000 (-) Opening inventory             -8,000             -12,000 (+) Closing inventory            12,000              13,200 Units to produce            84,000           1,21,200

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.