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How many mattresses need to be produced in the first quarter

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Reference no: EM132552445

Restopedic Ltd, estimates the following number of mattress sales for the first four months of 20X5:

Month                 Sales

January            5,000

February          7,000

March               6,500

April                 8,000

Finished goods inventory at the end of December is 1,500 units. Target ending finished goods inventory is 30% of the next month's sales.

Question 1. How many mattresses needs to be produced in January 20X5?

Question 2. How many mattresses needs to be produced in the first quarter (January, February & March)

Question 3. What factors needs to be considered determining the ending finished goods inventory.

Reference no: EM132552445

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