contestada

Champ, Inc., predicts the following sales in units for the coming two months: May June Sales in units 180 200 Each month’s ending inventory of finished units should be 60% of the next month’s sales. The April 30 finished goods inventory is 108 units. Compute Champ’s budgeted production (in units) for May.

Respuesta :

Answer:

Production in month of May = 192 units.

Explanation:

Provided information

Sales for each month

May = 180 units

June = 200 units

Also, ending inventory should be 60% of upcoming month's sales, thus

In month of May ending inventory = 200 [tex]\times[/tex] 60% = 120 units

Thus, In month of May production should be = Sales - Opening Inventory + Closing Inventory

= 180 - 108 + 120 = 192 units

Otras preguntas