Question

Ruiz Co. provides the following unit sales forecast for the next three months: Sales units January February March 2,600 3,700 4,600 The company wants to end each month with ending finished goods inventory equal to 20% of the next month's sales. Finished goods inventory on December 31 is 520 units. The budgeted production units for January are: Multiple Choice 2,600 units. 3,340 units. 104 units.

          Ruiz Co. provides the following unit sales forecast for the next three months:
Sales units
January February March
2,600 3,700 4,600
The company wants to end each month with ending finished goods inventory equal to 20% of the next month's sales.
Finished goods inventory on December 31 is 520 units. The budgeted production units for January are:
Multiple Choice
2,600 units.
3,340 units.
104 units.

Ruiz Co. provides the following unit sales forecast for the next three months:
Sales units
January February March
2,600 3,700 4,600
The company wants to end each month with ending finished goods inventory equal to 20% of the next month's sales.
Finished goods inventory on December 31 is 520 units. The budgeted production units for January are:
Multiple Choice
2,600 units.
3,340 units.
104 units.

Added by Mercedes J.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Croup Chais

Step 1

The ending finished goods inventory for January would be 20% of February's sales, which is 20% of 3,700 units, or 740 units. Similarly, the ending finished goods inventory for February would be 20% of March's sales, which is 20% of 4,600 units, or 920 units. Show more…

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Ruiz Co. provides the following unit sales forecast for the next three months: January, February, and March. Sales units are as follows: 2,600, 3,700, and 4,600 respectively. The company aims to have ending finished goods inventory at the end of each month equal to 20% of the next month's sales. The finished goods inventory on December 31 is 520 units. The budgeted production units for January are: Multiple Choice A) 2,600 units B) 3,340 units C) 104 units.