Question
ABC Company has budgeted sales in units for the next five months as follows: June 6,800 units July 5,400 August 7,200 September 4,600 October 3,800
ABC Company has budgeted sales in units for the next five months as follows:
June 6,800 units
July 5,400
August 7,200
September 4,600
October 3,800
Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on May 31 contained 400 units. The company needs to prepare a production budget for the third quarter of the year.
What is the beginning inventory in units for September?
What is the total number of units to be produced in July?
What is the desired ending inventory for August?
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