Furniture, Inc., estimates the following number of mattress sales for the first four months of 2019: Month Sales January 29,000 February 40,800 March 34,600 April 36,200 Finished goods inventory at the end of December is 7,000 units. Target ending finished goods inventory is 20% of the next month's sales. How many mattresses need to be produced in January 2019? Select one:
a. 27,800 mattresses
b. 41,800 mattresses
c. 30,160 mattresses
d. 44,160 mattresses

c. 30,160 mattresses

Explanation:

At the beginning of January, we had 7,000 units as opening stock inventory( which was the ending inventory in December), which means out of the planned sales in January 7,000 units are already available

The balance of January sales to be produced in January is the excess of planned sales of 29,000 units over the beginning inventory of 9,000 units

January sales items to be produced in January=29000-7000

January sales items to be produced in January=22,000

Also, we need to produce 20% of February sales in January which would serve as the closing inventory

total production in January=22,000+(40,800*20%)

total production in January=. 30,160 mattresses

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