Asked by
Prizcilla De Leon
on Dec 17, 2024
Verified
Heedy Company is trying to decide how many units of merchandise to produce each month. The company policy is to have 20% of the next month's sales in inventory at the end of each month. Projected sales for August, September, and October are 30,000 units, 20,000 units, and 40,000 units, respectively. The number of units that must be produced in September is
A) 24,000 units
B) 18,000 units
C) 28,000 units
D) 22,000 units
Beginning Inventory
The value of a company's inventory at the start of an accounting period, before any purchases or sales have occurred.
Projected Sales
An estimate of the amount of revenue that a company expects to earn in a future period from the sale of goods or services.
- Ascertain production prerequisites through examination of sales estimations and stock policies.
Verified Answer
RA
Learning Objectives
- Ascertain production prerequisites through examination of sales estimations and stock policies.