M Corporation produces and sells Product D. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product D over the next four months are.

Instructions are listed below.

Explanation:

Giving the following information:

M Corporation produces and sells Product D. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month.

We were not provided with enough information to calculate the requirement. But, I can make a small example to guide an answer.

For example:

March:

Sales= 3,000 units

Initial inventory= 750

April:

Sales= 4,500 units

May:

Sales= 3,300 units

Production:

March:

Sales= 3,000

Ending inventory= (4,500*0.25)= 1,125

Initial inventory= (750)

Production= 3,375

April:

Sales= 4,500

Ending inventory= (3,300*0.25)= 825

Initial inventory= (1,125)

Production= 4,200

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