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Vermicelli Company plans to sell 370,000 units of finished product in July and anticipates a...

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Accounting

Vermicelli Company plans to sell 370,000 units of finished product in July and anticipates a growth rate in sales of 5% per month. The desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. There are 320,000 finished units in inventory on June 30.

Vermicelli Company's production requirement in units of finished product for the three-month period ending September 30 is: (CMA adapted)

Multiple Choice

  • 1,271,790 units.

  • 1,166,425 units.

  • 1,270,900 units.

  • 1,189,082 units.

Answer & Explanation Solved by verified expert
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