Peak Patio Products manufactures outdoor chairs. The estimated sales for the final three months of Year 1 are: Month Unit Sales October 8,000 November 12,000 December 13,000 Finished goods inventory at the end of November was 3,000 units. Desired ending finished goods inventory is equal to 30% of the next month's sales. The chairs sell for $80 each. January sales for Year 2 are projected at 15,000 chairs. How many chairs should Peak Patio produce in December? A) 13,500 B) 14,500 C) 13,000 D) 15,000

Peak Patio Products manufactures outdoor chairs. The estimated sales for the final three months of Year 1 are: Month Unit Sales October 8,000 November 12,000 December 13,000 Finished goods inventory at the end of November was 3,000 units. Desired ending finished goods inventory is equal to 30% of the next month's sales. The chairs sell for $80 each. January sales for Year 2 are projected at 15,000 chairs. How many chairs should Peak Patio produce in December? A) 13,500 B) 14,500 C) 13,000 D) 15,000

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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