Grey Manufacturing Company expects sales to total 17,550 units in the first quar
ID: 2563392 • Letter: G
Question
Grey Manufacturing Company expects sales to total 17,550 units in the first quarter, 15,250 units in the second quarter, and 21,500 units in the third quarter of the current fiscal year. Company policy is to have on hand at the end of each quarter an amount of inventory equal to 10% of the following quarter’s sales.
Given this information, how many units should be scheduled for production in the second quarter?
Grey Manufacturing Company expects sales to total 17,550 units in the first quarter, 15,250 units in the second quarter, and 21,500 units in the third quarter of the current fiscal year. Company policy is to have on hand at the end of each quarter an amount of inventory equal to 10% of the following quarter’s sales.
Explanation / Answer
Sales for second quarter 15250 Add: Desired ending inventory 2150 =21500*10% Less: Beginning inventory 1525 =15250*10% Production required 15875
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