Furniture,Inc. ,estimates the following number of mattress sales for the first four months of 2019:

Finished goods inventory at the end of December is 7,000 units.Target ending finished goods inventory is 20% of the next month's sales.
How many mattresses need to be produced in January 2019?

Question

Furniture,Inc. ,estimates the following number of mattress sales for the first four months of 2019:

Finished goods inventory at the end of December is 7,000 units.Target ending finished goods inventory is 20% of the next month's sales.
How many mattresses need to be produced in January 2019?

Quizplus · Accepted Answer

Number of mattresses to be produced in January = [29,000 units (Estimated sales)+ 8,160 units (Budgeted ending inventory for January × 20%)- 7,000 units (Beginning inventory)] = 30,160 mattresses.