Answer:
Instructions are listed below.
Explanation:
Giving the following information:
M Corporation produces and sells Product D. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month.
We were not provided with enough information to calculate the requirement. But, I can make a small example to guide an answer.
For example:
March:
Sales= 3,000 units
Initial inventory= 750
April:
Sales= 4,500 units
May:
Sales= 3,300 units
Production:
March:
Sales= 3,000
Ending inventory= (4,500*0.25)= 1,125
Initial inventory= (750)
Production= 3,375
April:
Sales= 4,500
Ending inventory= (3,300*0.25)= 825
Initial inventory= (1,125)
Production= 4,200
