# Production forecast

sophie_612
LondonRegistered Posts:

**129**
Hi,

I'm hoping someone can please help me, on the attached picture i can work out the closing inventory etc but i cant see to get the same figures as the answers for rejected production.

thanks

Sophie

I'm hoping someone can please help me, on the attached picture i can work out the closing inventory etc but i cant see to get the same figures as the answers for rejected production.

thanks

Sophie

0

## Comments

268Are the answers highlighted are correct or incorrect?

Norvydas Valavicius.

129268Ok so the workings for Week 1 are; Total Manufactured units 74,674. The note says that 8% of the units fails production process & are rejected by quality inspector. Therefore this means that we've produced 74,674 but out of the 74,674 units 8% of them have been rejected. 74,674 x 0.08 = 5,974 (Rounded up).

Exactly the same process for rest of the weeks.

Norvydas Valavicius.

129268Ok so to work them out you need to look at the total units produced for Week 1, which is 68,700. This is the units that has been produced for the period already. The note says that 8% of units produced has been rejected, well we can see that there has been 68,700 units

alreadyproduced, this figure actually represents 92% of total production (100%-8%). This is because, 8% has been already rejected, and we still managed to produce 68,700. Therefore to find total unit production we do; 68,700/92*100=74,674 and this figure represents TOTAL unit production for Week 1.Now you can either times the 74,674 by 8% or simply deduct 74,674 from 68,700 and in either case you will get same amount of rejected units.

Norvydas Valavicius.

264We have been told that 8% is rejected, therefore the 68700 must be 92%

68700/92x8=rejected units

Remember good production + rejects =100% production

AAT Level 3. 2018 Distinction

AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%

Xero Certified Advisor

1293Thanks,