The Good Production Company makes darn good products that cost a lot of money. B
ID: 2372197 • Letter: T
Question
The Good Production Company makes darn good products that cost a lot of money. Based on their production and sales history, their policy is to end the month with 25 percent of the units that they expect to sell in the following month.
Budgeted units sales for selected month are as follows:
July 600 units
August 820 units
September 900 units
October 1,000 units
Assuming that the company started the month of July of 150 units in beginning inventory, how many units must be produced in each of the following months:
July
August
September
-Please show work!
Explanation / Answer
Production Budget July August September October A Opening Stock of unit 150 205 225 250 B Sale (in Unit) 600 820 900 1000 C Closing Stock (25%of Expected sales unit in the following month) 205 225 250 0 D Production Required[B+C-A] 655 840 925
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