Answer the following questions using the information below: Furniture, Inc, estimates the following number of mattress sales for the first four months of 2016: Sales 22,000 30,800 28,600 35,200 Month January February March April Finished goods inventory at the end of December is 6,600 units. Target ending finished goods inventory is 20% of the next month’s sales.
Expert Answer
B) 81840 Mattresses is corrrect answer.
Prodcution Budget
Jan Feb Mar Total- Qtr-1 Apr
Budgeted Unit Sales 22000 30800 28600 81400 35200
Estimated Closing Stock
( 20% of Next Month) 6160 5720 7040 7040 14500
Less: Opening Stock 6600 6160 5720 6600 7040
Required Prodcution Unit 21560 30360 29920 81840 42660