Marlow Company produces hand tools.A production budget for the next four months is as follows: March 10,300 units,April 13,300,May 16,500,and June 21,800.Marlow Company's ending finished goods inventory policy is 10% of the following month's sales.Meadow plans to sell 16,000 units in May.How many units will be sold in April?

Question

Quizplus · Accepted Answer

The ending inventory for April should be 10% of May's sales, which is 1,600 units (10% of 16,000). The production for April is 13,300 units. Therefore, the sales for April would be the production minus the ending inventory: 13,300 - 1,600 = 11,700 units. However, the question asks for the number of units sold in April, which is not directly provided in the options. The closest logical choice based on typical inventory and sales patterns is 13,000 units.

Marlow Company Produces Hand Tools