Crane Company plans to sell 220 potted plants during April and 140 units in May

Finance Aug 14, 2020

Crane Company plans to sell 220 potted plants during April and 140 units in May. Crane Company keeps 15% of the next month's sales as ending inventory. How many units should Crane Company produce during April?

Expert Solution

Computation of the number of units produce in April:-

Ending Inventory = 15% * May Sale

= 15% * 140

= 21 units

Beginning Inventory = 15% * April sale

= 15% * 220

= 33 units

Required production = Expected sales + Ending inventory - Beginning inventory

= 220 + 21 - 33

= 208 units

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