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11. XYZ company produces garage doors. The estimated sales of the garage doors for March, 60,000; April, 90,000; and May, 120
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Answer #1

The answer is option A 94,500.

Ending inventory is 15% of following month sales , means beginning inventory of april which is ending inventory of march is 15% of 90,000 = 13,500

and ending inventory of april is 15% of 120,000 = 18,000

Units need to produced in the month of April = Sales for April + Ending inventory of April - Beginning inventory of April

= 90,000 + 18,000 - 13,500

= 94,500

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