Months sales in inventory


Rodriquez Company budgeted the following sales in units:

January 30,000
February 20,000
March 40,000

Rodriquez's policy is to have 20% of the following month's sales in inventory. On January 1, inventory equaled 7,500 units. February production in units is:

a. 20,000.

b. 28,000.

c. 40,000.

d. 26,500.

e. 24,000.

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Accounting Basics: Months sales in inventory
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