Furniture, Inc., estimates the following number of mattress sales for the first four months of 2019:...

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Furniture, Inc., estimates the following number of mattress sales for the first four months of 2019:...

Furniture, Inc., estimates the following number of mattress sales for the first four months of 2019:

Month	Sales
January	27,000
February	34,800
March	32,600
April	37,200

Finished goods inventory at the end of December is 6,700 units. Target ending finished goods inventory is 10%of the next month's sales. How many mattresses need to be produced in January 2019?

A. 36,400 mattresses
B. 23,780 mattresses
C. 37,180 mattresses
D. 23,000 mattresses

business accounting

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Answer 1

Answer #1

Answer:

B - 23,780 mattresses

Mattresses need to produced in January 2019

= Estimated Sales of January 2019 + 10% of next month(February) Sales - Finished goods at the end of December

= 27,000 units + 10% (34,800 units) - 6,700 units

= 27,000 units + 3.480 units - 6,700 units

= 23,780 units

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Answer 2

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