Automotive Parts Productions (APP) is a manufacturer of motor parts – Budget
Automotive Parts Productions (APP) is a manufacturer of motor parts for family cars based in Bendigo, Australia. These motor parts are sold directly to car manufacturers in Australia for use in making motors. The accountant of APP has compiled information regarding Part-1, one of the parts produced and sold by the company. The forecasted monthly sales units for part of 2018 are presented as follows: June 30,000 July 40,000 August 50,000 September 54,000 October 60,000 November 64,000 The following part presents data obtained from the budgeting documents of the company: Inventory balances and the related desired ending inventory policies are stated as follows: Description July 1 balances Desired ending inventory policy (monthly) Finished Goods 28,000 70%…
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