Kahlon Company likes to maintain its inventory quantity at the end of each month equal to one fourth of the next month’s expected sales. Kahlon had 140,000 units in inventory on November 1, 2023. Expected sales in units are 480,000 in November and 840,000 in December. How many units does Kahlon Company need to produce during November 2023?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Kahlon Company likes to maintain its inventory quantity at the end of each month equal to one fourth of the next month’s expected sales. Kahlon had 140,000 units in inventory on November 1, 2023. Expected sales in units are 480,000 in November and 840,000 in December. How many units does Kahlon Company need to produce during November 2023?

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