Question

Dummitt, Inc. anticipates sales of 70,000 units, 68,000 units, and 71,000 units in July, August, and September, respectively. Company policy is to maintain an ending finished-goods inventory equal to 30% of the following month's sales. On the basis of this information, how many units would the company plan to produce in August

Answer 1

the number of units produced in August is 68,900 units

Step-by-step explanation:

The computation of the number of units produced in August is presented below:

Sales 68,000 units

Add: ending inventory (71,000 units × 30%) 21,300 units

Less: beginning inventory (68,000 units × 30%) -20,400 units

Production in August 68,900 units

Hence, the number of units produced in August is 68,900 units

The same format should be used