How many mattresses need to be produced in the first quarter (January, February, March) of 20x4?

ACCOUNTING

Multiple Choice

Furniture, Inc., estimates the following number of mattress sales for the first four months of 20x4:

Month Sales

January 5,000

February 7,000

March 6,500

April 8,000



Finished goods inventory at the end of December is 1,500 units. Target ending finished goods inventory is 30% of next month's sales.



How many mattresses need to be produced in the first quarter (January, February, March) of 20x4?

a. 18,500 mattresses

b. 19,400 mattresses

c. 20,900 mattresses

d. 22,400 mattresses

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