question archive 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
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