Answer:
Production= 31,000
Explanation:
Giving the following information:
Sales:
October= 30,000
November= 50,000
The company requires that 5% of the next month's sales be on hand at the end of each month.
To calculate the production for October, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 30,000 + (50,000*0.05) - (30,000*0.05)
Production= 31,000
