Mobile Company manufactures phone chargers and has a JIT policy that ending inve

Question

Mobile Company manufactures phone chargers and has a JIT policy that ending inventory must equal 20% of the next month's sales. It estimates that October's actual ending inventory will consist of 43,000 units. November and December sales are estimated to be 440,000 and 360,000 units, respectively. Compute the number of units to be produced that would appear on the company's production budget for the month of November. MOBILE COMPANY Production Budget For Month Ended November 30 Required units of available production Units to be produced

Explanation / Answer

Mobile Company Production Budget For month ended November 30 Particulrs No of Unit Budgeted estimated sale 440000 Add : Closing Stock (360000*20%) 72000 required units of available production 512000 Less: Opening stock ( given in question) 43000 Units to be produced 469000

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