Final answer:
The Jack Boltz Company is required to produce 1,500 units in February to maintain their finished goods inventory policy and satisfy the projected sales for that month.
Step-by-step explanation:
The student has asked how many total production units in units are required for February for the Jack Boltz Company, given their policy is to maintain a Finished Goods Inventory equal to three-fourths of the following month's Sales. To calculate this, we will use the provided sales figures for January (1,000 units), February (1,200 units), and March (1,400 units), and the company's beginning inventory for January, which was 750 units.
First, we calculate the desired ending inventory for February, which should be three-fourths of March's sales:
- Ending Inventory for February = 1,400 units (March Sales) * 3/4 = 1,050 units
Next, we need to factor in the beginning inventory for February, which is the same as the ending inventory for January. Since no data for the ending inventory in January is provided, we assume it is the same as the beginning, which is 750 units.
Now, we estimate the total number of units that need to be produced in February:
- Total Production in February = February's Sales + Ending Inventory for February - Beginning Inventory for February
- Total Production in February = 1,200 units (February Sales) + 1,050 units (Desired Ending Inventory for February) - 750 units (Beginning Inventory for February)
- Total Production in February = 1,500 units
Therefore, the Jack Boltz Company needs to produce a total of 1,500 units in February to maintain their Inventory policy and meet sales demand.