Compute the number of units to be produced

Reference no: EM132081152

Question: Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 20% of the next month's sales. It estimates that May's ending inventory will consist of 58,200 units. June and July sales are estimated to be 291,000 and 301,000 units, respectively. Trago assigns variable overhead at a rate of $2.90 per unit of production. Fixed overhead equals $411,000 per month. Compute the number of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for month of June.

Reference no: EM132081152

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