21 May HOW MANY UNITS NEED TO BE PRODUCED IN THE FOURTH QUARTER?
Southside Corporation produces and sells a single product. Expected sales for September are 13,000 units; for October, 14,000 units; for November, 9,000 units; for December, 10,000 units; and for January, 15,000 units. The company’s desired level of ending finished goods inventory at the end of a month is 10 percent of the following month’s expected sales in units. At the end of August, 1,200 units were on hand.
How many units need to be produced in the fourth quarter?
units
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