Trevor Company expects sales of Product W to be 70,000 units in April, 85,000 units in May, and 80,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 35,000 units of Product W in the ending inventory. Given this information, Trevor Company's production of Product W for the month of April should be: Multiple Choice 76,000 units 85,000 units 70,000 units 60.000 units

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 3CMA: Ming Company has budgeted sales at 6,300 units for July, and desires to have 590 good units on hand...
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Trevor Company expects sales of Product W to be 70,000 units in April, 85,000 units in May, and 80,000 units in June. The company desires that the
Inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on
March 31 there were 35,000 units of Product W in the ending inventory. Given this information, Trevor Company's production of Product W for the month
of April should be:
Multiple Choice
76,000 units
85,000 units
70,000 units
60.000 units
Transcribed Image Text:Trevor Company expects sales of Product W to be 70,000 units in April, 85,000 units in May, and 80,000 units in June. The company desires that the Inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 35,000 units of Product W in the ending inventory. Given this information, Trevor Company's production of Product W for the month of April should be: Multiple Choice 76,000 units 85,000 units 70,000 units 60.000 units
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