Ask Question
3 November, 09:34

Kenner company produces two products: SR200 and TX500. Budged sales for four months are as follows;

SR200 TX500

May 8,000 20,000

June 13,000 32,000

July 11,000 39,000

August 18,000 46,000

Kenner's ending inventory policy is that SR200 should have 15% of next month's sales in ending inventory and TX500 should have 40% of next months sales in ending Inventory. On May 1, there were 1,200 units of SR200 and 9,000 units of TX500.

TX500 requires 6 units of component A. (SR200 does not use component A.) There were 30,000 units of Component A in inventory on May 1. Kenner wants to have a 20% of the following month's production needs in inventory for component A.

1. How many units of TX500 are budgeted for production in June?

A. 32,000

B. 34,800

C. 47,600

D. 12,800

E. 45,000

+1
Answers (1)
  1. 3 November, 09:55
    0
    The correct answer is B.

    Explanation:

    Giving the following information:

    Budgeted production TX500

    May 20,000

    June 32,000

    July 39,000

    August 46,000

    TX500 should have 40% of next months sales in ending Inventory. On May 1, there were 9,000 units of TX500.

    Production for June:

    Sales = 32,000 units

    Ending inventory = (39,000*0.40) = 15,600

    Beginning inventory = (32,000*0.4) = 12,800 (-)

    Total = 34,800 units
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Kenner company produces two products: SR200 and TX500. Budged sales for four months are as follows; SR200 TX500 May 8,000 20,000 June ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers