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Garza Electronics expects to sell 680 units in January, 430 units in February, and 1,900 units...

Garza Electronics expects to sell 680 units in January, 430 units in February, and 1,900 units in March. January’s beginning inventory is 1,060 units. Expected sales for the whole year are 18,000 units. Garza has decided on a level monthly production schedule of 1,500 units (18,000 units/12 months = 1,500 units per month). What is the expected end-of-month inventory for January, February, and March?

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Answer #1
Statement Showing Expected End of Month Inventory
Particulars January February March
Beginning Inventory 1060 1880 2950
Add: Production 1500 1500 1500
Less: Sales 680 430 1900
End of Month Inventory 1880 2950 2550
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