Lunar Industry maintains ending inventory for each month at 40% of the next month’s sales. The company predicted the following sales for the first four months of the year: January February March April Sales (units) 1,560 1,820 1,950 1,560 How many units should be produced in February?

Lunar Industry maintains ending inventory for each month at 40% of the next month’s sales. The company predicted the following sales for the first four months of the year: January February March April Sales (units) 1,560 1,820 1,950 1,560 How many units should be produced in February?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Lunar Industry maintains ending inventory for each month at 40% of the next month’s sales. The company predicted the following sales for the first four months of the year:

	January		February		March		April
Sales (units)	1,560		1,820		1,950		1,560

How many units should be produced in February?

Multiple Choice

1,988
1,092
1,768
2,600
1,872

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3. Lunar Industry maintains ending inventory for each month at 40% of the next month’s sales. The company predicted the following sales for the first four months of the year: January February March April Sales (units) 1,560 1,820 1,950 1,560 How many units should be produced in February? a)1,988 b)1,092 c)1,872 d)1,768 e)2,600