Kuttrit Company has beginning inventory of 15,000 units, and expected Sales of 2

Question

Kuttrit Company has beginning inventory of 15,000 units, and expected Sales of 23,000 units. If the desired ending inventory is 18,000 units, how many units should be produced? 10, 000 20.000 56,500 26,000 Totts company produces Jump Ropes. It has the following Sales Projections for the upcoming year: First Quarter Budgeted Jump Rope Sales in Units: 25,000 Second Quart or Budgeted Jump Rope Sales in Units: 80, 000 Third Quarter Budgeted Jump Rope Sales m Units: 16,000 Fourth Quarter Budgeted Jump Rope Solos in Units: 26,000 Inventory at the beginning of the year was 4,400 Jump Ropes. Totts Company wants to have 10% of the next quarter's sales .n units on hand at the and of each quarter. How many Jump Ropes should the company product dunning the first quarter? 25,000 20,600 28,600 37,400

Explanation / Answer

1. Beg Inv – 15.000 units

Exp Sales             – 23,000 units

Des ending Inv – 18,000 units

Units to be produced = Des inv – Beg inv + Exp sales

= 18,000 – 15,000 + 23,000 = 26,000 units

Ans . d. 26,000

2. Beg Inv – 4,400 jump ropes

Des Inv (10% of 2nd qtrs.exp sales) – 80,000 * (10/100) = 8,000 jump ropes

Exp sales (1st qtr) - 25,000 jump ropes

Jump ropes to be produced during the First Qtr = Des inv – Beg inv + Exp sales

= 8000 – 4400 + 25000 = 28,600 jump ropes

Ans. c. 28,600

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