Answer the following questions using the information below:
Beds4us Inc.estimates the following number of mattress sales for the first four months of 2018:
$$\begin{array} { l r }
\text { Month } & \text { Sales } \
\text { January } & 6000 \
\text { February } & 8500 \
\text { March } & 7500 \
\text { April } & 7500
\end{array}$$ Finished goods inventory at the end of December is 1500 units.Target ending finished goods inventory is 30% of the next month's sales.
-How many mattresses need to be produced in the first quarter (January,February,March)of 2018?
A)19 400 mattresses
B)22 400 mattresses
C)22 750 mattresses
D)18 500 mattresses

Question

Answer the following questions using the information below:
Beds4us Inc.estimates the following number of mattress sales for the first four months of 2018:
 $$\begin{array} { l r } 
\text { Month } & \text { Sales } \
\text { January } & 6000 \
\text { February } & 8500 \
\text { March } & 7500 \
\text { April } & 7500
\end{array}$$ Finished goods inventory at the end of December is 1500 units.Target ending finished goods inventory is 30% of the next month's sales.
-How many mattresses need to be produced in the first quarter (January,February,March)of 2018?
A)19 400 mattresses
B)22 400 mattresses
C)22 750 mattresses
D)18 500 mattresses

Quizplus · Accepted Answer

To calculate the production for the first quarter, calculate the required ending inventory for each month, then determine the production needed to meet sales and inventory targets. For January, target ending inventory is 30% of February sales (2550 units), for February it's 30% of March sales (2250 units), and for March it's 30% of April sales (2250 units). Calculate production for each month: January (7050), February (8200), March (7500). Total production = 7050 + 8200 + 7500 = 22,750 mattresses.

Answer the Following Questions Using the Information Below: Beds4us Inc

Answer the Following Questions Using the Information Below:
Beds4us Inc