Answer:
Instructions are listed below.
Explanation:
Giving the following information:
January 41,000
February 38,000
March 50,000
April 51,000
Patrick's policy is to have 25% of next month's sales in ending inventory. On January 1, it is expected that there will be 6,700 drums of solvent on hand.
January:
Sales= 41,000
Next month sales= 38,000*0.25= 9,500 units
Initial inventory= 6700 (-)
Total production= 43,800 units
February:
Sales= 38,000
Next month sales= 50,000*0.25= 12,500 units
Initial inventory= 9,500 (-)
Total production= 41,000 units
March:
Sales= 50,000
Next month sales= 51,000*0.25= 12,750 units
Initial inventory= 12,500 (-)
Total production= 50,250 units
April:
Sales= 51,000
Initial inventory= 12,500
Total production= 38,500 units
Total production= 173,550 units
