The total number of units to be produced in February is:

A) 6,120.
B) 5,400.
C) 5,580.
D) 5,220.

Question

The total number of units to be produced in February is:A) 6,120.B) 5,400.C) 5,580.D) 5,220.

Salman Hussnain · Accepted Answer

Final Answer : C, Explanation :  To calculate the total units to be produced in February, we need to consider the sales forecast for February, the desired ending inventory for February (which is 10% of March's sales), and the beginning inventory for February (which is the ending inventory of January). February's sales are forecasted to be 5,400 units. The desired ending inventory for February is 10% of March's sales, which is 10% of 7,200 units = 720 units. The beginning inventory for February is the ending inventory of January, which is 10% of February's sales (10% of 5,400 units = 540 units).The total units to be produced in February = February's sales + February's desired ending inventory - February's beginning inventory = 5,400 units + 720 units - 540 units = 5,580 units.

The total number of units to be produced in February is:

A) 6,120.
B) 5,400.
C) 5,580.
D) 5,220.

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