The following forecasted sales pertain to Micah Company: Month Sales April $200,000 May 250,000 June 150,000 July 100,000 Collection pattern: 60% in month of sale 40% in month following the sale Accounts receivable as of March 31 $35,000 Finished goods inventory as of March 31 4,000 units The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20% of the next month's sales. How many units are expected to be produced in April?
The following forecasted sales pertain to Micah Company: Month Sales April $200,000 May 250,000 June 150,000 July 100,000 Collection pattern: 60% in month of sale 40% in month following the sale Accounts receivable as of March 31 $35,000 Finished goods inventory as of March 31 4,000 units The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20% of the next month's sales. How many units are expected to be produced in April?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following
| Month | Sales |
| April | $200,000 |
| May | 250,000 |
| June | 150,000 |
| July | 100,000 |
Collection pattern:
60% in month of sale
40% in month following the sale
| $35,000 | |
| Finished goods inventory as of March 31 | 4,000 units |
The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20% of the next month's sales. How many units are expected to be produced in April?
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