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6 December, 23:12

Unicorn Corporation manufactures boxes. The estimated numbers of boxes sold for the first three months of the current year are as follows: Month Sales January 3,200 February 5,000 March 4,600 Finished goods inventory at the end of December was 800 units. Ending finished goods inventory is equal to 25% of the next month's sales. Unicorn Corporation expects to sell the boxes for $5 each. April sales are projected at 4,500 boxes. How many boxes should be produced in February

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  1. 7 December, 00:58
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    4,900 units

    Explanation:

    The computation of boxes should be produced in February is shown below:-

    Purchase = Sales + Closing stock - Opening Stock

    Opening stock - = Closing stock of January

    Closing stock of Jan = 5,000 * 25%

    = 1,250

    Closing stock of Feb = 4,600 * 25%

    = 1,150

    Sales = 5,000

    Now, we will put the value into formula

    = 5,000 + 1,150 - 1,250

    = 6,150 - 1,250

    = 4,900 units
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