Ecology Co. sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the current year: Sales in units Jan. 2,500 Feb. 3,100 March. April. 3,700 2,800 Ending inventory for each month should be 15% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February?

Ecology Co. sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the current year: Sales in units Jan. 2,500 Feb. 3,100 March. April. 3,700 2,800 Ending inventory for each month should be 15% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 10Q: If the sales forecast estimates that 50,000 units of product will be sold during the following year,...

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