Goldenlock Company manufactures watches and has a JIT policy that ending inventory must equal 20 of the next months sales It estimates that Octobers actual ending inventory will consist of 95,000 watches November and December sales are estimated to be 350,000 and 400,000 watches, respectively Compu...

Goldenlock Company Production Budget For Month Ended November 30 ...

Goldenlock Company manufactures watches and has a JIT policy that ending inventory must equal 20% of the

Question:

Goldenlock Company manufactures watches and has a JIT policy that must equal 20% of the next month’s sales. It estimates that October’s actual will consist of 95,000 watches. November and December sales are estimated to be 350,000 and 400,000 watches, respectively. Compute the number of watches to be produced that would appear on the company’s production budget for the month of November.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...