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Walsh Company: Calculate a company’s production in a month
Question
Walsh Company expects sales of Product W to be 68,000 units in April, 83,000 units in May and 78,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 20% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 33,000 units of Product W in the ending inventory. Given this information, Walsh Company's production of Product W for the month of April should be:
a. 51,600 units
b. 83,000 units
c. 68,000 units
d. 33,520 units
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