Answer:
Total production= 14,500 units
Explanation:
Giving the following information:
The finished goods inventory on hand at the end of each month should equal 4,000 units plus 25% of the next month's sales.
The expected sales in January are 14,000 units and expected sales in February are 18,000 units.
Assume that on January 1 the inventory of Quickclean was 8,000 units.
Production for January:
Sales= 14,000
Ending inventory= 4,000 + (18,000*0.25)= 8,500
Beginning inventory= (8,000)
Total production= 14,500