question archive Waco’s Widgets plans to sell 22,000 widgets during May, 19,000 units in June, and 20,000 during July

Waco’s Widgets plans to sell 22,000 widgets during May, 19,000 units in June, and 20,000 during July

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Waco’s Widgets plans to sell 22,000 widgets during May, 19,000 units in June, and 20,000 during July. Waco keeps 10% of the next month’s sales as ending inventory. How many units should Waco produce during June?

18,900

19,100

19,000

21,000

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Answer:

Sales in June = 19000 units

Opening inventory = 19000 * 10% = 1900 units

Ending inventory in June = 20000 * 10%= 2000 units

Units to be produced in June = Sales + Ending inventory - opening inventory

= 19000 + 2000 - 1900

19100 units

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