Answer (A) is correct . To determine the correct number of handles purchased for October, the projected unit output of finished goods for October and November must be calculated. Projected sales of cabinets in October 4,600 Add:? Required ending inventory (50% of projected November sales) 2,500 Less:? Beginning inventory (3,800) Total cabinet production for October 3,300 ? Projected sales of cabinets in November 5,000
Answer (B) is incorrect because The total required for October and November sales equals 76,800.
Answer (C) is incorrect because The figure of 40,000 equals the total required for November’s sales.
Answer (D) is incorrect because The total required for October’s sales equals 36,800.
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The number of handles Mountain should purchase in October is
