Answer the following questions using the information below:
Furniture, Inc., estimates the following number of mattress sales for the first four months of 2016:
$$\begin{array} { l l }
\text { Month } & \text { Sales } \
\text { January } & 22,000 \
\text { February } & 30,800 \
\text { March } & 28,600 \
\text { April } & 35,200
\end{array}$$ Finished goods inventory at the end of December is 6,600 units. Target ending finished goods inventory is 20% of the next month's sales.
-How many mattresses should be produced in the first quarter of 2016?

Question

Answer the following questions using the information below:
Furniture, Inc., estimates the following number of mattress sales for the first four months of 2016:
 $$\begin{array} { l l } 
\text { Month } & \text { Sales } \
\text { January } & 22,000 \
\text { February } & 30,800 \
\text { March } & 28,600 \
\text { April } & 35,200
\end{array}$$ Finished goods inventory at the end of December is 6,600 units. Target ending finished goods inventory is 20% of the next month's sales.
-How many mattresses should be produced in the first quarter of 2016?

Quizplus · Accepted Answer

To calculate the number of mattresses to be produced, we need to consider the sales and the target ending inventory for each month. For January, the target ending inventory is 20% of February's sales (6,160 units). For February, it's 20% of March's sales (5,720 units), and for March, it's 20% of April's sales (7,040 units). The production for each month is calculated as: Sales + Target Ending Inventory - Beginning Inventory. Summing up the production for January, February, and March gives the total production for the first quarter.

Answer the Following Questions Using the Information Below: Furniture, Inc

Answer the Following Questions Using the Information Below:
Furniture, Inc