Josephy Company manufactures hockey sticks that have trouble scoring goals for t
ID: 2571890 • Letter: J
Question
Josephy Company manufactures hockey sticks that have trouble scoring goals for the local hockey team. The estimated number of hockey stick sales for the first three months of 2017 are as follows: Sales: Jan: 10,500 Feb: 21,000 March: 15,000
Finished goods inventory at the end of december 2016 was 3000 units. Ending finished goods inventory is budgeted to be 30% of the next months sales. Josephs company expects to sell the sticks for 30$ each. April 2017 sales are projected at 16000 sticks. How many sticks should be produced in Feb?
Explanation / Answer
Calculate how many sticks should be produced in Feb.
February Sale in feb (Stick) 21000 Add: Desired ending inventory (stick) (15000*30%) 4500 Total needs 25500 Less: Beginning inventory (21000*30%) (6300) Production in feb (stick) 19200Related Questions
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