Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 19

Forrest Company manufactures phone chargers and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that October's actual ending inventory will consist of 40,000 units. November and December sales are estimated to be 400,000 and 350,000 units, respectively. Compute the number of units to be produced that would appear on the company's production budget for the month of November.