Trago company manufactures a single product and has a jit, Accounting Basics

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Trago company manufactures a single product and has a jit

Question: Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 30, 000 units. June and July sales are estimated to be 300, 000 and 310, 000 units, respectively. Compute the number of units to be produced that would appear on the company's production budget for the month of June.

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Accounting Basics: Trago company manufactures a single product and has a jit

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