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The management of Nicto Company plans to have an inventory at the end of each month equal to 30% of the next month's sales. Budgeted sales in units over the next three months are 87,000 in October, 127,000 in November, and 107,000 in December. Budgeted production for November would be:

Respuesta :

facundobuzzetti

Answer:

Production= 121,000

Explanation:

To calculate the budgeted production for November, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production=  127,000 + (107,000*0.3) - (127,000*0.3)

Production= 127,000 + 32,100 - 38,100

Production= 121,000

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