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Harden, Inc., has budgeted sales in units for the next five months as follows: June 8,400 units July 6,700 units August 8,500 units September 8,200
Harden, Inc., has budgeted sales in units for the next five months as follows:
June | 8,400 | units |
July | 6,700 | units |
August | 8,500 | units |
September | 8,200 | units |
October | 6,300 | units |
Past experience has shown that the ending inventory for each month should be equal to 20% of the next month's sales in units. The inventory on May 31 contained 1,680 units. The company needs to prepare a production budget for the next five months.
The beginning inventory for September should be:
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