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Anonymous

Dec 01, 2024

Aloan co. provides the following sales forecast for the next three months: january february march sales units 3,000 4,200 5,000 the

Aloan Co. provides the following sales forecast for the next three months:

  • January: 3,000 units
  • February: 4,200 units
  • March: 5,000 units

The company aims to maintain an ending finished goods inventory equal to 10% of the following month's sales. The finished goods inventory on December 31 is 300 units.

What are the budgeted production units for January?

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1 Answers

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Anonymous

Feb 03, 2025

Total= 3,120 unitsExplanation:Giving the following information:production budget: January= 3,000 unitsFebruary= 4,200 unitsMarch= 5,000 unitsThe company wants to end each month with ending finished goods inventory equal to 10% of the next month’s sales. Beginning inventory= 300 units. To calculate the production for any month, we need to use the following formula:Production= sales + desired ending inventory - beginning inventoryJanuary:Sales= 3,000Desired ending inventory= (4,200*0.1)= 420Beginning inventory= (300)Total= 3,120 units
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Business Management Banking

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Budgeting Inventory Management Sales Forecasting

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