Determine the production requirements


Response to the following problem:

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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Cost Accounting: Determine the production requirements
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