On January 1 the company had 330 widgets in finished good inventory. The company policy is to maintain an inventory of 15% of next montha sales. The company forecast the following sales: Jan. 2,200 Feb. 2,800 March 3,500 April 4,000 Determine the required production for January?

On January 1 the company had 330 widgets in finished good inventory. The company policy is to maintain an inventory of 15% of next montha sales. The company forecast the following sales: Jan. 2,200 Feb. 2,800 March 3,500 April 4,000 Determine the required production for January?

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

On January 1 the company had 330 widgets in finished good inventory. The company policy is to maintain an inventory of 15% of next montha sales.

The company forecast the following sales:

Jan. 2,200

Feb. 2,800

March 3,500

April 4,000

Determine the required production for January?

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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