Question #1

Beginning inventory of 14,000 units, will sell 50,000 units for the month, and wants to reduce ending inventory to 40% of beginning. How many units should be produced?

Beginning is 14,000 reduce to 40% = 5,600 (this should be ending)
50,000 is the goal, so 14,000-5,600=8,400 left over beginning inventory
50,000-8,400=41,600 should be produced

Question #2

Forecast credit sales for 4th QTR: 20% of sales receipts are collected in the month of sale, 70% in the following month, and 10% never collected.

Sep $50,000 Oct $40,000 Nov $35,000 Dec $60,000

20% + 70% - 10%
Oct 8,000 + 35,000 - 4000= 39,000
Nov 7,000 + 28,000 - 3,500= 31,500
Dec 1,200 + 24,500 - 6,000= 19,700