Jack Frost Company has the following sales forecast for the next quarter: January, 13,000 units; February, 12,000 units; March, 14,000 units. Sales totaled 8,000 units in December. The December ending finished goods inventory was 2,000 units. End-of-month finished goods inventory levels are planned to be equal to 20 percent of the next month's planned sales. Calculate the number of units of inventory Jack Frost Company needs to purchase for January?

Question

Quizplus · Accepted Answer

The Answer of Jack Frost Company has the following sales forecast for the next quarter: January, 13,000 units; February, 12,000 units; March, 14,000 units. Sales totaled 8,000 units in December. The December ending finished goods inventory was 2,000 units. End-of-month finished goods inventory levels are planned to be equal to 20 percent of the next month's planned sales. Calculate the number of units of inventory Jack Frost Company needs to purchase for January?

Jack Frost Company Has the Following Sales Forecast for the Next