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 in June.

Production= 280,500 units

Explanation:

Giving the following information:

ending inventory must equal 5% of the next month's sales.

Beginning inventory= 14,000 units.

Sales:

June= 280,000 units

July= 290,000 units

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

Production= sales + desired ending inventory - beginning inventory

Production= 280,000 + (290,000*0.05) - 14,000

Production= 280,500 units

answer; possession utility;

answer; descriptive statistics;