Question

Custom Embroidering, Inc. (CEI) manufactures baseball hats with the Arizona State University Sun Devil logo embroidered on the hats. Even though the baseball hats come in a variety of colors, the hats are considered to be a single product. Each hat sells for $20 and CEI has forecasted quarterly sales for 2020 are as follows: Units 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $150,000 $200,000 $225,000 $175,000 Dollars 7,500 10,000 11,250 8,750 Finished goods inventory is maintained at 50% of the following quarter's sales. How many units need to be produced during the first quarter 2020? (The January 1, 2020 beginning inventory is 3,750 units) 12,500 16,500 6,250 8,750

Answer 1

soluten Geren, units need to be during the fut quarter is = Forecasted sales & Ending finished google inventory Beginning finished goods inventory 7500 unét t (10,000 x 504.) - 3150 chita 7500 units + 5000 chits - 3700 unite 12500 units - 3750 units 8750 unit. [option De Comect] Ending finished goods Inventory = 50% of fore Carted sales 2 for next quarter