Redfield Company has prepared the following forecasts of monthly sales: Sales in units January, 4,500; February, 5,200; March, 4,200; April 2,800. Redfield Company has decided that the number of units in its inventory at the end of each month should equal 75% of next month's sales. The budgeted cost per unit is $20. How many units should be purchased in February?

Redfield Company has prepared the following forecasts of monthly sales: Sales in units January, 4,500; February, 5,200; March, 4,200; April 2,800. Redfield Company has decided that the number of units in its inventory at the end of each month should equal 75% of next month's sales. The budgeted cost per unit is $20. How many units should be purchased in February?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 4EA: One Device makes universal remote controls and expects to sell 500 units in January, 800 in...

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One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next months sales. Prepare a production budget for the first four months of the year.
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