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31 December, 17:20

Daisy Company manufactures dog collars. The following selected data relates to Daisy Company's budgeted sales and inventory levels of the dog collars for the upcoming quarter:

October expected unit sales 2,400

November expected unit sales 2,300

December expected unit sales 3,000

October desired ending unit finished goods inventory 880

November desired ending unit finished goods inventory 720

December desired ending unit finished goods inventory 600

How many dog collars should Daisy Company produce in November?

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  1. 31 December, 18:22
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    Production = 2,140 units

    Explanation:

    Giving the following information:

    November expected unit sales 2,300

    October desired ending unit finished goods inventory 880

    November desired ending unit finished goods inventory 720

    To calculate the production required for November, we need to use the following formula:

    Production = sales + desired ending inventory - beginning inventory

    Production = 2,300 + 720 - 880

    Production = 2,140 units
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