Question

Walsh Company expects sales of Product W to be 63,000 units in April, 78,000 units in May and 73,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 35% of the next month’s expected unit sales. Due to excessive production during March, on March 31 there were 28,000 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:

62,300 units

78,000 units

63,000 units

58,905 units

Please prove your answer.

 



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