Question

XYZ Co has forecasted June sales of 800 units and July sales of 1.900 units. The company maintains ending inventory equal to
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Answer #1

Answer : Option A, 2,175 units

Explanation :

Calculation of June's required production :

= forecasted sales + desired ending inventory - beginning inventory

= 800 units + 1900 units × 125% - 800 units × 125%

= 800 + 2,375 - 1,000

= 2,175 units

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