I see that under widgets, Beginning Inventory is 25% of the same months Budgeted units. But I do not understand how this was assumed from the information presented in the problem below.

Can you please explain how this 25% in-month Beginning Inventory amount was calculated from the information in the problem?

The Table contains the answers.

CHAPTER 5 Be good li'l chillins and FOLLOW DIRECTIONS! Given Sales, to find Given Production, to find Production Material Purchases Sales (units) Production + End Inv (units) * Material per unit ACT HOU Total Material for Production - Beg Inv (units) + End Inv Production (units) Total - Beg Inv Material Purchases Ending inventory is a percentage of next period's sales when finding production, and production when finding material purchases. Soster makes and sells widgets. Each widget uses 2 pounds of zinc alloy. Budgeted sales [in units) of widgets for the next five months is as follows: Widgets March April May June July Budgeted sales (units) 16,000 12,000 14,000 13,900 15,500 The company wants to maintain monthly ending inventories of widgets equal to 25% of next month's sales. The company wants to maintain monthly ending inventories of zinc alloy equal to 30%% of the following month's budgeted production needs. The pounds of zinc alloy on hand on March 1 were equal to the budgeted amount. The cost of zinc alloy is $4.00 per pound. Soster pays 40%% of raw material purchases in the month purchased and pays the remaining 60%% in the following month. Determine how much cash will be paid in Apriband May to the zinc alloy suppliers. The sales price of a widget is $50. Soster collects 25% of sales in the month of the sale, 65%% in the next month, and 8% In the second month after the sale. The remaining amount is uncollectable. Determine how much cash will be collected In May lungand ToExam 3 Study Guide Part B Chapter 5 Part B Widgets March April May June July Budgeted sales (units) 16,000 12,000 14,000 13,900 15,500 Ending Inventory (25%) 3,000 3,500 3,475 3,875 Total 19,000 15,500 17,475 17,775 Beginning Inventory ( 4,000) ( 3,000) ( 3,500) ( 3.475) Production 15,000 12,500 13,975 14,300 Zinc x 2 x 2 N Pounds of zinc for production 30,000 25,000 27,950 28,600 Ending Inventory (30%) 7,500 8,385 8,580 Total 37,500 33,385 36,530 Beginning Inventory ( 9,000) ( 7,500) ( 8,385) Zinc Purchases (Ibs) 28,500 25,885 28,145 * $4 x $4 x $4 Zinc Purchases ($) $114,000 $103,540 $112,580 40% month of purchases $ 45,600 $ 41,416 $ 45,032 60% last month's purchases $ 68,400 $ 62,124 Total Cash to Zinc suppliers $109,816 $107,156