Wisdom Toys has budgeted sales and production over the next quarter as follows: $$\begin{array} { l c c }
& \text { Unit Sales } & \text { Production } \
\text { September } & 43,000 & 44,400 \
\text { October } & 50,000 & 52,800 \
\text { November } & 64,000 & 61,200
\end{array}$$ The company requires that 20% of the next month's sales in units are on hand at the end of each month. December sales are expected to be 50,000 units. How many video games are in inventory at October 31?

Question

Wisdom Toys has budgeted sales and production over the next quarter as follows: $$\begin{array} { l c c } 
& \text { Unit Sales } & \text { Production } \
\text { September } & 43,000 & 44,400 \
\text { October } & 50,000 & 52,800 \
\text { November } & 64,000 & 61,200
\end{array}$$ The company requires that 20% of the next month's sales in units are on hand at the end of each month. December sales are expected to be 50,000 units. How many video games are in inventory at October 31?

Quizplus · Accepted Answer

The correct answer is A.The company requires that 20% of the next month's sales in units are on hand at the end of each month. So, the ending inventory for October should be 20% of November sales, which is 64,000 * 20% = 12,800 units.

Wisdom Toys Has Budgeted Sales and Production Over the Next