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    How many chairs should Brockette produce in October

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    Brockette Chair Company manufactures rocking chairs. The estimated number of rocking chair sales for each of the last three months of Year 1 is as follows:

    Month Unit Sales
    October 5,000
    November 7,000
    December 6,500

    Finished goods inventory at the end of September was 1,500 units. Ending finished goods inventory is equal to 25 percent of the next month's sales. Brockette Chair expects to sell the chairs for $100 each. January sales for Year 2 are projected at 8,000 chairs. How many chairs should Brockette produce in October?

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    Solution Summary

    The solution determines how many Chairs Brockette produced in October.