Trago Company Manufactures a Single Product and Has a JIT

question 17

Multiple Choice

Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 5% of the next month's sales.It estimates that May's ending inventory will consist of 14,000 units.June and July sales are estimated to be 280,000 and 290,000 units,respectively.Compute the number of units to be produced that would appear on the company's production budget for the month of June.

• A)290,000.
• B)294,500.
• C)280,500.
• D)280,000.
• E)266,000.

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Definitions:

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The ability of a party to produce a particular good or service at a lower marginal cost than others.

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A citrus fruit known for its juicy segments and sweet to slightly sour taste, often consumed fresh or squeezed for juice.