Meadow Company produces hand tools.A sales budget for the next four months is as follows: March 10,000 units,April 13,000,May 16,000 and June 21,000.Meadow Company's ending finished goods inventory policy is 10% of the following month's sales.What is budgeted ending finished goods inventory for May?

Question

Quizplus · Accepted Answer

The budgeted ending finished goods inventory for May is 10% of June's sales, which is 10% of 21,000 units = 2,100 units.

Meadow Company Produces Hand Tools