Question
Red Enterprises has budgeted sales in units for the next five months as follows: June 4,570 units July 7,450 units August 5,370 units September 6,840
Red Enterprises has budgeted sales in units for the next five months as follows:
| June | 4,570 | units |
| July | 7,450 | units |
| August | 5,370 | units |
| September | 6,840 | units |
| October | 3,770 | units |
Past experience has shown that the ending inventory for each month must be equal to 20% of the next month's sales in units. The inventory on May 31 contained 914 units. The company needs to prepare a production budget for the second quarter of the year.
The total number of units to be produced in July is:
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Foundations Of Managerial Accounting
Authors: Dr. Susan Galbreath
1st Edition
0390786276, 978-0390786272
