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
11. XYZ company produces garage doors. The estimated sales of the garage doors for March, 60,000;...
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Wright Lighting Fixtures forecasts its sales in units for the
next four months as follows:
March
27,000
April
29,000
May
26,500
June
25,000
Wright maintains an ending inventory for each month in the
amount of one times the expected sales in the following month. The
ending inventory for February (March’s beginning inventory)
reflects this policy. Materials cost $4 per unit and are paid for
in the month after production. Labor cost is $8 per unit and is
paid for in...
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