Trago Company Manufactures a Single Product and Has a JIT

question 109

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

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Definitions:

Covered Call

An options strategy where an investor holds a long position in an asset and sells call options on that same asset to generate income from the option premiums.

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OTC Options

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