A sales budget is given below for one of the products

Reference no: EM13608281

A sales budget is given below for one of the products manufactured by the Key Co.: Sales Budget in Units January 15,000 February 30,000 March 55,000 April 100,000 May 25,000 June 20,000 The inventory of finished goods at the end of each month must equal 21% of the next month's sales. This requirement had been met on January 1 of the current year. Each unit of product requires three specialized electrical switches. Since the production of these specialized switches by Key's suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of each month equal to 36% of the next month's production needs. This requirement had been met on January 1 of the current year. Required: Prepare a production plan for January, February, March and in total for the quarter. (Input all amounts as positive values.) January February March Total Total needs Units to be produced Calculate the quantity of switches to be purchased each month for January, February, March and in total for the quarter. (Input all amounts as positive values.) January February March Total Total needs Required purchases

Reference no: EM13608281

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