Question

Daisy Company manufactures dog collars. The following selected data relates to Daisy Company's budgeted sales and inventory levels of the dog collars for the upcoming quarter:

October expected unit sales 2,400
November expected unit sales 2,300
December expected unit sales 3,000
October desired ending unit finished goods inventory 880
November desired ending unit finished goods inventory 720
December desired ending unit finished goods inventory 600
How many dog collars should Daisy Company produce in November?

Answer 1

Production= 2,140 units

Step-by-step explanation:

Giving the following information:

November expected unit sales 2,300

October desired ending unit finished goods inventory 880

November desired ending unit finished goods inventory 720

To calculate the production required for November, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 2,300 + 720 - 880

Production= 2,140 units