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Category > Accounting Posted 17 Aug 2017 My Price 9.00

Kenner Company

Figure 9-2.
Kenner Company produces two products: SR200 and TX500. Budgeted sales for four months are as follows:

 

SR200

TX500

May

8,000

20,000

June

13,000

32,000

July

11,000

39,000

August

18,000

46,000
     


Kenner's ending inventory policy is that SR200 should have 15 percent of next month's sales in ending inventory and TX500 should have 40 percent of next month's sales in ending inventory. On May 1, there were 1,200 units of SR200 and 9,000 units of TX500.

TX500 requires 6 units of component A. (SR200 does not use component A.) There were 30,000 units of component A in inventory on May 1. Kenner wants to have 20 percent of the following month's production needs in inventory for Component A.

Refer to Figure 9-2. What is the budgeted production of SR200 for May in units?

   

8,750
   

9,950
   

8,000
   

1,200
   

10,500

 

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Aug 2017 07:08 PM My Price 9.00

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