Everything I have so far is correct, I just cannot figure out how to come up wit

Question

Everything I have so far is correct, I just cannot figure out how to come up with First Quarter Beginning Inventory and Fourth Quarter Ending Inventory??

Micro Products, Inc., has developed a very powerful electronic calculator. Each calculator requires two small

Everything I have so far is correct, I just cannot figure out how to come up with First Quarter Beginning Inventory and Fourth Quarter Ending Inventory??

Micro Products, Inc., has developed a very powerful electronic calculator. Each calculator requires two small

Explanation / Answer

1.) Since its given that ending inventory of a quarter should be 20% of following quarters production needs.

Beginning Inv of 1st Quarter = Ending Inventory of Last Quarter= 20% of 1st quarters production needs=108000*20%=21600

2.) Ending Inventory of 4th Quarter = 20% of Production needs of 1st Quarter in next year= 20% * 77000*2=154000*20%=30,800

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.