Ecology Co. sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the current year: Sales in units Jan. 2,500 Feb. 3,100 March. April. 3,700 2,800 Ending inventory for each month should be 15% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February?
Ecology Co. sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the current year: Sales in units Jan. 2,500 Feb. 3,100 March. April. 3,700 2,800 Ending inventory for each month should be 15% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 10Q: If the sales forecast estimates that 50,000 units of product will be sold during the following year,...
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Question
![Ecology Co. sells a biodegradable product called Dissol and has predicted the following
sales for the first four months of the current year:
Sales in units
O 3,010
O 3,100
O 3,190
O 2,830
O 3,700
Ending inventory for each month should be 15% of the next month's sales, and the
December 31 inventory is consistent with that policy. How many units should be
purchased in February?
F2
-0-
(@
Jan.
2
2,500
F3
0+
Feb.
3
3,100
March. April.
3,700
F4
2,800
F5
F6
%
5
F7
6
2
F8
7](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe9012119-9c6d-4fef-bc1b-606b13e76ae8%2F2fb8480b-2879-4f62-a82d-5e9f54b23303%2F8fddouc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ecology Co. sells a biodegradable product called Dissol and has predicted the following
sales for the first four months of the current year:
Sales in units
O 3,010
O 3,100
O 3,190
O 2,830
O 3,700
Ending inventory for each month should be 15% of the next month's sales, and the
December 31 inventory is consistent with that policy. How many units should be
purchased in February?
F2
-0-
(@
Jan.
2
2,500
F3
0+
Feb.
3
3,100
March. April.
3,700
F4
2,800
F5
F6
%
5
F7
6
2
F8
7
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