Barkin Company budgeted the following sales in units: 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?
$$\begin{array} { l l }
\text { April } & 50,000 \
\text { May } & 20,000 \
\text { June } & 40,000
\end{array}$$

Question

Barkin Company budgeted the following sales in units: 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?
$$\begin{array} { l l } 
\text { April } & 50,000 \
\text { May } & 20,000 \
\text { June } & 40,000
\end{array}$$

Quizplus · Accepted Answer

May's production = May's sales + 20% of June's sales - April's ending inventory = 20,000 + 0.2(40,000) - 10,000 = 24,000 units.

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