Garza Electronics expects to sell 500 units in January, 250 units in February, and 1,000 units in March. January's beginning inventory is 700 units. Expected sales for the whole year are 7,200 units. Garza has decided on a level monthly production schedule of 600 units (7,200 units/12 months = 600 units per month). What is the expected end- of-month inventory for January, February, and March?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 4EA: One Device makes universal remote controls and expects to sell 500 units in January, 800 in...
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Garza Electronics expects to sell 500 units in January, 250 units in February, and 1,000 units in March. January's
beginning inventory is 700 units. Expected sales for the whole year are 7,200 units. Garza has decided on a level
monthly production schedule of 600 units (7,200 units/12 months = 600 units per month). What is the expected end-
of-month inventory for January, February, and March?
Transcribed Image Text:Garza Electronics expects to sell 500 units in January, 250 units in February, and 1,000 units in March. January's beginning inventory is 700 units. Expected sales for the whole year are 7,200 units. Garza has decided on a level monthly production schedule of 600 units (7,200 units/12 months = 600 units per month). What is the expected end- of-month inventory for January, February, and March?
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