Kenner Company produces two products: SR200 and TX500.Budgeted sales for four months are as follows:
Kenner's ending inventory policy is that SR200 should have 15% of next month's sales in ending inventory and TX500 should have 40% of next month's sales in ending inventory.On May 1, there were 1,200 units of SR200 and 9,000 units of TX500.
TX500 requires 6 units of component A.(SR200 does not use component A.) There were 30,000 units of component A in inventory on May 1.Kenner wants to have 20% of the following month's production needs in inventory for Component A.
- What is the desired ending inventory of component A for May?
A) 86,000
B) 180,000
C) 58,500
D) 41,760
E) 30,000
Correct Answer:
Verified
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