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10.

Short Company produces two products: X Brand and Y Brand. Budgeted sales for four months are as follows:

X Brand Y Brand

May 10,000 40,000

June 20,000 70,000

July 15,000 80,000

August 30,000 90,000

Shorts ending inventory policy is that X Brand should have 10% of its next months sales in ending inventory and Y Brand should have 20% of next months sales in its ending inventory. On May 1, Shorties inventory had 1,000 units of X Brand and 9,000 units of Y Brand.

Y Brand requires four units of component A. (X Brand does not use component A.) On May 1, 2,100 units of component A were in inventory. Short wants to have 30% of the following months production needs in inventory for component A.

How many units of Y Brand are budgeted for production in June? Brand X in May?