Determine the companys production requirements


Question:

(Production schedule) The projected sales, in units, for Einstein Inc. by month for the first four months were

January

8,000

February

12,000

 

March

16,000

April

19,200

Inventory of finished goods on December 31 was 6,400 units. The company desires to have an ending inventory each month equal to one-half of next month's estimated sales. Determine the company's production requirements for each month of the first quarter.

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Accounting Basics: Determine the companys production requirements
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