Why do firms want to hold inventory of finished goods an

Reference no: EM13592161

The following table presents Generic Motors Company's production budget. GM's inventory policy is to have ending inventory equal to20% of next month's sales.

	February	March	April
Ending inventory			5,000
Beginning inventory	2,000
Budgeted sales	13,000	17,000	18,000
Budgeted production

Required:
(a) Fill in the missing numbers in the table above.
(Hint if you get stuck: What is the relation between ending inventory for one month and beginning inventory for the following month?)

b) Why do firms want to hold inventory of finished goods? (an alternative could be to produce exactly the amount they are going to sell, and hold zero inventories)

Reference no: EM13592161

Questions Cloud

A paid on june 30 and december 31 the proceeds from the : a paid on june 30 and december 31. the proceeds from the bonds are 4901036. using straight line method amortization

A companys sales are 50 in cah and 50 on credit 70 of the : a companys sales are 50 in cah and 50 on credit. 70 of the credit sales are colected in the month of the sale 20 in the

On january 2 2010 a calendar-year corporation sold 8 bonds : on january 2 2010 a calendar-year corporation sold 8 bonds with a face value of 600000. mature in 5 years paid

Ben franklin dropped the oil on the surface of a lake and : ben franklin dropped the oil on the surface of a lake and found that 2 ml of oil gave a circle of radius 30 m.

Why do firms want to hold inventory of finished goods an : the following table presents generic motors companys production budget. gms inventory policy is to have ending

When trinitrotoluene tntc7h5 no23 is detonated large : when trinitrotoluene tntc7h5 no23 is detonated large volumes of gases are released.if 100g of tnt were detonated what

What is the area of each triangle in a square pyramid if : what is the area of each triangle in a square pyramid if the length of each side of the square base is 6 cm and the

The rate per hour of each order entry employee is 5600 per : the rate per hour of each order entry employee is 56.00 per hour. on average it takes an order entry employee about 0.1

Staley company has 30 order operators with associated costs : staley company has 30 order operators with associated costs of 1000000 per year. staley calculated that each operator

User Account

All Pages