1,650 2,650 5,300 4,300 13,900 production is used, it is assumed that inventory will directly matc ction manager thinks the above assumption is too optimistic and se. She will produce the 13,900 items at a level of 3,475 per mont he ending inventory at the end of each month? Compare the unit
1,650 2,650 5,300 4,300 13,900 production is used, it is assumed that inventory will directly matc ction manager thinks the above assumption is too optimistic and se. She will produce the 13,900 items at a level of 3,475 per mont he ending inventory at the end of each month? Compare the unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Antonio Banderos & Scarves sells headwear that is very popular in the fall-winter season. Units sold are anticipated as follows:
October
November
December
January
1,650
2,650
5,300
4,300
13,900
If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory
buildup.
October
November
December
January
The production manager thinks the above assumption is too optimistic and decides to go with level production to avoid being out of
merchandise. She will produce the 13,900 items at a level of 3,475 per month.
a. What is the ending inventory at the end of each month? Compare the units sold to the units produced and keep a running total. (Do
not leave any empty spaces; input a 0 wherever it is required. Negative values should be indicated by a minus sign.)
Units
sold
Antonio Banderos & Scarves
Units
Produced
Change in
inventory
Ending
inventory
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