A company budgeted unit sales of 51,000 units for January 2019 and 60,000 units for February 2019. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales. If there were 15,300 units of inventory on hand on 31 December 2018, how many units should be produced in January 2019 in order for the company to meet its goals?

Question

Quizplus · Accepted Answer

Production for January 2019 should be 53,700 units (51,000 + 18,000 - 15,300).

A Company Budgeted Unit Sales of 51,000 Units for January