Answer the questions from the information provided.

2.1 Use the information provided below to calculate the number of units of Product Tex that must be produced for July and August.(4 marks)

INFORMATION

The estimated sales volume of Product Tex is 25 000 units for June, 21 000 units for July, 30 000 units for August

and 36 000 units for September. The policy of management is to maintain an ending finished goods inventory each

month equal to 20% of the current months budgeted sales and 30% of the following months budgeted sales.