Wash Company expects sales of Product W to be 56.000 units in April, 71,000 unit

Question

Wash Company expects sales of Product W to be 56.000 units in April, 71,000 units in May, and 66,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next months expected unit sales Due to excessive production during March, on March 31 there were 23.400 units of Product Win the ending inventory Given this information, Walsh Company rsquo s production of Product W for the month of April should be: 61,000 units. 84,400 units. 55,000 units. 70,000 units

Explanation / Answer

March April May June Sales 56000 71000 66000 Opening Inventory 23400 28400 26400 Ending Inventory 23400 28400 26400 0 Production 61000 69000 39600 Answer is 61000 Units

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