Paradise Gifts has budgeted sales for the quarter as follows: January $\quad 11,000$ units
February $\quad 13,000$ units
March $\quad 17,000$ units The ending inventory of finished goods each month should equal 25% of the next month's budgeted sales in units. How much is scheduled production for February?

Question

Quizplus · Accepted Answer

To calculate February's production, start with February's sales (13,000 units), add the desired ending inventory for February (25% of March's sales, which is 4,250 units), and subtract January's ending inventory (25% of February's sales, which is 3,250 units). This results in 13,000 + 4,250 - 3,250 = 14,000 units.

Paradise Gifts Has Budgeted Sales for the Quarter as Follows 11,000\quad 11,00011,000

Paradise Gifts Has Budgeted Sales for the Quarter as Follows $\quad 11,000$