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Jakob Littel

Feb 20, 2025

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 february march sales units 3,000 4,200 5,000 the company wants to end each month with ending finished goods inventory equal to 10% of the next month’s sales. finished goods inventory on december 31 is 300 units. the budgeted production units for january are:
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Anya Stehr

Feb 20, 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... Show More
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