Fab Manufacturing Corporation manufactures and sells stainless steel coffee mugs.Expected mug sales at Fab (in units) for the next three months are as follows: Fab likes to maintain a finished goods inventory equal to 30% of the next month's estimated sales.How many mugs should Fab plan on producing during the month of November?

Question

Quizplus · Accepted Answer

11eaaee8_6710_5307_933a_7b41d57914d5_TB5186_00 Units produced = Ending inventory + Units sold - Beginning inventory
= (30% F1F1F1S1F1F1F10 31,000) + 25,000 - (25,000 F1F1F1S1F1F1F10 30%)
= 9,300 + 25,000 - 7,500 = 26,800

Fab Manufacturing Corporation Manufactures and Sells Stainless Steel Coffee Mugs