Determine the companys production requirements


Question:

1. Seguin Inc. has the following projected unit sales for the first four months of 2011:

January .......................102,400
February ..................... 96,000
March ........................128,000
April ..........................153,600

Company policy is to have an ending monthly inventory equal to 5 percent of next month's estimated sales; however, this criterion was not in effect at the end of 2010. Ending inventory at that time was 7,000 units. Determine the company's production requirements for each month of the first quarter of 2011.

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Accounting Basics: Determine the companys production requirements
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