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Ehrlich Corporation is preparing budgets for the months of April and May. Management desires that finished-goods inventory is 70% of the following month's sales. Budgeted
Ehrlich Corporation is preparing budgets for the months of April and May. Management desires that finished-goods inventory is 70% of the following month's sales. Budgeted sales for April, May, and June are expected to be 5,000 units, 5,600 units, and 6,000 units, respectively. Ending inventory in March was 500 units. Sales price per unit is $10. Required: Prepare a sales budget and a production budget for Ehrlich for April and May
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