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    tom-weston's Avatar
    tom-weston Posts: 1, Reputation: 1
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    #1

    Jun 14, 2009, 05:17 AM
    Accounting
    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's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #2

    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

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