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Redcoat Company's unit sales were budgeted for the first six months of its fiscal year as follows:
Management wants to maintain an ending inventory equal to 15% of the next month's sales.
-The unit production requirements for February are:

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Redcoat Company's unit sales were budgeted for the first six months of its fiscal year as follows:
  Management wants to maintain an ending inventory equal to 15% of the next month's sales.
-The unit production requirements for February are:

Quizplus · Accepted Answer

To determine the unit production requirements for February, we need to first calculate the expected sales for March. According to the given information, Redcoat Company wants to maintain an ending inventory equal to 15% of the next month's sales. Therefore, the sales for March would be:

Sales for March = (Sales for April x 1.15) = (300,000 x 1.15) = 345,000

Now, we can calculate the production requirements for February using the following formula:

Production requirements = Sales for March + Ending inventory for February - Beginning inventory for February
                      = 345,000 + (0.15 x 345,000) - (0.15 x 300,000)
                      = 300,250

Therefore, the correct answer is C)300,250.

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