Bomba Array Video Games Corporation Has Forecasted The Following Monthly Sales:
ID: 2730589 • Letter: B
Question
Bomba Array Video Games Corporation Has Forecasted The Following Monthly Sales: Bomba Array Video Games Sells The Popular And Capture Video Game. It Sells For $5 Per Unit And Cost $3 Per Unit To Produce. A Level Production Policy Is Followed. Each Month Production Is Equal To Annual Sales (In Units) Divided By 12 Of Each Months Sales 40 Percent Are For Cash And 60 Percent Are On Account. Al accounts received or collect or month after sales is made. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 29,000 units.Explanation / Answer
Images blurred , using best judgment to capture data Bombs Away Video Games Corporation Production & Inventory Schedules in Units Month Beginning Inventory + Production - Sales = Ending Inventory January 29,000 + 67,000 - 104,000 = (8,000) February (8,000) + 67,000 - 97,000 = (38,000) March (38,000) + 67,000 - 29,000 = - April - + 67,000 - 29,000 = 38,000 May 38,000 + 67,000 - 24,000 = 81,000 June 81,000 + 67,000 - 39,000 = 109,000 July 109,000 + 67,000 - 49,000 = 127,000 August 127,000 + 67,000 - 49,000 = 145,000 September 145,000 + 67,000 - 59,000 = 153,000 October 153,000 + 67,000 - 89,000 = 131,000 November 131,000 + 67,000 - 109,000 = 89,000 December 89,000 + 67,000 - 127,000 = 29,000 Total 804,000 The logic is flawed as firsy two months closing stock coming negative.