Barkin Company budgeted the following sales in units: $$\begin{array} { l l }
\text { April } & 50,000 \
\text { May } & 20,000 \
\text { June } & 40,000
\end{array}$$ Barkin's policy is to have 20% of the following month's sales in inventory.On April 1,inventory equalled 10,000 units.What is May's production in units?

Question

Barkin Company budgeted the following sales in units: $$\begin{array} { l l } 
\text { April } & 50,000 \
\text { May } & 20,000 \
\text { June } & 40,000
\end{array}$$ Barkin's policy is to have 20% of the following month's sales in inventory.On April 1,inventory equalled 10,000 units.What is May's production in units?

Quizplus · Accepted Answer

May's production = May's sales + Ending inventory for May - Beginning inventory for May = 20,000 + (40,000 * 20%) - (20,000 * 20%) = 20,000 + 8,000 - 4,000 = 24,000 units.

Barkin Company Budgeted the Following Sales in Units April 50,000 May 20,000 June 40,000\begin{array} { l l } \text { April } & 50,000 \\\text { May } & 20,000 \\\text { June } & 40,000\end{array} April May June ​50,00020,00040,000​

Barkin Company Budgeted the Following Sales in Units $\begin{array} { l l } \text { April } & 50,000 \\\text { May } & 20,000 \\\text { June } & 40,000\end{array}$