Keegan Company Manufactures a Single Product and Has a JIT

question 147

Multiple Choice

Keegan 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 20,000 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) 288,000.
• B) 260,000.
• C) 289,000.
• D) 280,000.
• E) 309,000.

---

Definitions:

Organizational Culture

A system of shared assumptions, values, and beliefs that governs how people behave in organizations.

Ethical Behavior

Acting in ways consistent with what society and individuals typically think are good values.

Shared Goals

Objectives or aims that are held in common by a group, team, or partnership, promoting collaboration and collective effort.

Behavioral Tendencies

Patterns or dispositions in an individual's behavior that are characteristic and often predictable over time.