Fiwrt Corporation manufactures and sells stainless steel coffee mugs. Expected mug sales Fiwrt (in units) for...
Fiwrt Corporation manufactures and sells stainless steel coffee mugs. Expected mug sales Fiwrt (in units) for the next three months are as follows:
| October | November | December | |||||
| Budgeted unit sales | 30,000 | 36,000 | 34,000 | ||||
Fiwrt likes to maintain a finished goods inventory equal to 30% of the next month's estimated sales. How many mugs should Fiwrt plan on producing during the month of November?
Homework Answers
Production unit (novemebr) = Sale unit+Desired ending inventory-Beginning inventory
= 36000+(34000*30%)-(36000*30%)
Production unit (november) = 35400 Units
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