Majan Company expects sales of Product G to be 30,000 units in April, 40,000 units in May and 50,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 30% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 20,000 units of Product G in the ending inventory. Majan Company's production of Product G for May should be: 3. Majan Company expects sales of Product G to be 30,000units in April, 40,000 units in May and 50,000 units inJune. The company desires that the inventory on hand atthe end of each month be equal to 30% of the nextmonth's expected unit sales. Due to excessive productionduring March, on March 31 there were 20,000 units ofProduct G in the ending inventory. Majan Company'sproduction of Product G for the month of May shouldbe:

Production budget means how many units to be produced in a particular period of time.

Answered: Majan Company expects sales of Product…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...

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Majan Company expects sales of Product G to be 30,000 units in April, 40,000 units in May and 50,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 30% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 20,000 units of Product G in the ending inventory. Majan Company's production of Product G for May should be:

3. Majan Company expects sales of Product G to be 30,000
units in April, 40,000 units in May and 50,000 units in
June. The company desires that the inventory on hand at
the end of each month be equal to 30% of the next
month's expected unit sales. Due to excessive production
during March, on March 31 there were 20,000 units of
Product G in the ending inventory. Majan Company's
production of Product G for the month of May should
be:

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