Cripe Corporation maintains ending inventory for each month at 5% of the following month's sales. It predicted the following sales (in units) for the first four months of the coming year: JanuaryFebruaryMarchAprilSales (units)3,4003,8004,4004,200 How many units should be produced in March?
What will be an ideal response?
4,390
(Ch. 10 Quiz #1):
Required production = Estimated sales + Desired ending inventory ? Beginning inventory = 4,400 + (4,200 × 0.05) ? (4,400 × 0.05) = 4,400 units + 210 units ? 220 units = 4,390 units
Business
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