Question

Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 5% of the next month's sales. It estimates that May's ending inventory will consist of 14,000 units. June and July sales are estimated to be 280,000 and 290,000 units, respectively. Compute the number of units to be produced that would appear on the company's production budget for the month of June.

Answer 1

Answer:

Units to be produced:   280,500

Explanation:

June production budget:

sales for the period                     280,000

desired inventory

5% of next mont

5% of July sales

5% of 290,000 =                             14,500

Production requirement              294,500

Beginning Inventory for June       (14,000)

-ending inventory of May-

Units to be produced                  280,500

the sales for the period and the desired ending inventory added together is our total requirement for the month.

The beginning inventory are units already in stock. so it decrease our needs.

Answer 2

5% of 290,000 = 14,500

Production requirements 294,500

Beginning Inventory for June (14,000)

ending inventory of May

294,500 - 14,500 = 280,500

Units to be produced 280,500

Further Explanation

Mass production, also known as production flow or continuous production, is a production system in large quantities of standard products, including and especially in assembly lines. Together with production work and batch production, it is one of three production methods.

The concept of mass production can be applied to various types of products, from liquids and particles handled in large quantities (such as food, fuel, chemicals, and mined minerals) to small solid parts (such as fasteners) to the assembly of parts these small parts (such as household appliances and cars).

Mass production is a diverse field, but can generally be compared to handicraft production or distributed manufacturing. Some mass production techniques, such as standard sizes and production lines, predate the Industrial Revolution for centuries; however, the introduction of machine tools and techniques for producing interchangeable parts that were developed in the mid-19th century modern mass production can be carried out properly.

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Mass production  https://brainly.com/question/13131144

Production requirements  https://brainly.com/question/13131144

Details

Grade: College

Subject: Business

Keyword: mass, production, requirement