ABC Company’s budgeted sales for June, July, and August are 13,600, 17,600, and
ID: 2469804 • Letter: A
Question
ABC Company’s budgeted sales for June, July, and August are 13,600, 17,600, and 15,600 units, respectively. ABC requires 30% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 4,080 units.
Calculate the number of units to be produced in June and July.
JUNE.......JULY
Number of Units /
ABC Company’s budgeted sales for June, July, and August are 13,600, 17,600, and 15,600 units, respectively. ABC requires 30% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 4,080 units.
Explanation / Answer
the number of units to be produced in June are 14800 units and in July are 17000 units
June July Opening finished goods inventory 4080 5280 Production during the month (Balancing figure) 14800 17000 total to be sold 18880 22280 Less: units sold 13600 17600 Closing finished goods inventory 5280 (30% of 17600) 4680 (30% of 15600)