Answer (B) is correct . The company will need 4,200 finished units to meet the sales estimate for December. In addition, 3,000 finished units (6,000 unit sales in January × 50%) should be in inventory at the end of December. The total requirement is therefore 7,200 units (4,200 + 3,000). Of these units, 2,100 (4,200 unit sales in December × 50%) should be available from November’s ending inventory. Consequently, production in December should be 5,100 units (7,200 – 2,100).
Answer (A) is incorrect because Ending inventory for December equals 3,000 units.
Answer (C) is incorrect because December’s projected sales equals 4,200 units.
Answer (D) is incorrect because The figure of 5,000 equals November’s sales.
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The number of units that Mountain finished during December is
