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ABCC estimates the following number of mattress sales for the first four months of 2019: Month...

ABCC estimates the following number of mattress sales for the first four months of 2019:

Month Sales

January 40,000

February 25,000

March 35,000

April 30,000

Finished goods inventory at the end of December, 2018 is 8,000 units. Target ending finished goods inventory is 20% of the next month's sales.

  1. How many mattresses need to be produced in February 2019?

  1. How many mattresses should be produced in the first quarter (three months) of 2019?
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Answer #1
Part A Mattresses need to be produced in February 2019 = [(40,000+25,000+(0.20*35,000) = $72,000
Part B Mattresses should be produced in the first quarter (three months) of 2019 = [(40,000+25,000+35,000+(0.20*30,000)] - 8,000 = 98,000
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