Asked by
Amanda Marissa
on Dec 16, 2024
Verified
Walsh Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 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 25,000 units of Product W in the ending inventory. Given this information, Walsh Company's production of Product W
For the month of April should be how many units:
A) 65,000.
B) 75,000.
C) 60,000.
D) 66,000.
Expected Unit Sales
The number of units of product a business anticipates selling over a specific period, based on forecasts.
Inventory On Hand
Inventory on hand is the total quantity of goods, materials, and products that a company has available at any given time for use in production or sale.
Production Units
The quantity of items or goods produced during a specific period, serving as a measure of a company's manufacturing activity.
- Gain familiarity with the theory and calculation of anticipated production demands, taking into account sales figures, levels of inventory, and inventory management strategies.
Verified Answer
SH
Learning Objectives
- Gain familiarity with the theory and calculation of anticipated production demands, taking into account sales figures, levels of inventory, and inventory management strategies.