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How we got the desired ending inventory for june? 10:47 PM Tue 19 Mar ch06 rayda(1) copy1-converted AprilMay21000 June Quarter Production Materials per unit 26,000

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10:47 PM Tue 19 Mar ch06 rayda(1) copy1-converted AprilMay21000 June Quarter Production Materials per unit 26,000 5 Production needs 130,000 46,000 5 230,000 29,000 5 145,000 5 505,000 Add desired 14,500 11,500 156,500 11,500 516,500 ending stock 23,000 July Production and Stock 25,0000 Sales in units Add desired ending stock Total units needed Less beginning stock Production in units Pounds per unit Total pounds Desired percent Desired ending stock 14,500 13,000 3,000 28,000 5,000 23,000 5 115,000 10% 11,500 0 142,000503,500 28 10:48 PM Tue 19 Mar 84% ch06 rayda(1) copy1-converted Budgeting example o Royal Company is preparing budgets for the quarter ending June 30. e Budgeted sales for the next five months are: 20,000 units 50,000 units 30,000 units 25,000 units 15,000 units. e The selling price is 10 per unit. April May June July August 14

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