Calculate units to be produced

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Nico’s Sports Manufacturing sells baseball gloves. December 2017 sales were 100,000 gloves @ $30 per unit, for a total sales of $3,000,000. The marketing department expect sales to increase by 1% in January 2108, another 1% in February 2018 and March 2018 sales are budgeted to be 500 gloves more than February.

Nico’s inventory policy is to maintain an ending inventory equal to 20% of the next month budgeted sales. Budgeted sales for April 2018 are 103,000 units. December 2017 ending inventory was 30,000 units.

a. Calculate required units of available production for March 2018

b. Calculate units to be produced for February 2018

c. Calculate units to be produced for the 1st quarter of 2018

Reference no: EM131955329

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