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tom-weston
Jun 14, 2009, 05:17 AM
XYZ Co. has forecasted June sales of 600 units and July sales of 1000 units. The company maintains ending inventory equal to 125% of next month's sales. June beginning inventory reflects this policy. What is June's required production?

1100 units
-0- units
500 units
400 units
rehmanvohra
Jun 23, 2009, 07:20 AM
Sales for the month of June...... . 600 units
Ending Inventory 1000 x 1.25 = 1250 units
Goods available for sale . . . . . . 1850
Beginning inventory 600 x 1.25 ..(750)
Production in June. . . . . . . . . . ..1100 units