Knowledge Check 01 Feline Watch Company makes wrist watches out of silver metal sheets. Feline sold 200 watches in the month of June. It projects July and August sales to be 400 and 600 respectively. The company`s policy is to have 50% of next month`s sales in inventory. If the June ending inventory of watches is 200, how many watches must be produced in July

the number of watches to be produced in July is 500

Explanation:

The calculation of the number of watches to be produced in July is given below;

Units Expected to be sale400  

Add: Desired ending inventory 300(50% of 600)

Total available700  

Less: Beginning Inventory -200  

Units to be produced 500

Hence, the number of watches to be produced in July is 500

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