The following forecasted sales pertain to Rapid City: $$\begin{array} { l r }
\text { Month } & \text { Sales } \
\text { June } & \$ 160,000 \
\text { July } & 200,000 \
\text { August } & 120,000 \
\text { September } & 80,000
\end{array}$$ Finished goods inventory as of May 31 6,000 units
Rapid City has a selling price of $5 per unit and expects to maintain ending inventories equal to 25 percent of next month's sales.
How many units are expected to be produced in June?

Question

The following forecasted sales pertain to Rapid City: $$\begin{array} { l r } 
\text { Month } & \text { Sales } \
\text { June } & \$ 160,000 \
\text { July } & 200,000 \
\text { August } & 120,000 \
\text { September } & 80,000
\end{array}$$ Finished goods inventory as of May 31 6,000 units
Rapid City has a selling price of $5 per unit and expects to maintain ending inventories equal to 25 percent of next month's sales.
How many units are expected to be produced in June?

Quizplus · Accepted Answer

June production = July sales x 25% + June sales - May ending inventory= $200,000 x 25% + $160,000 - 6,000 units= $50,000 + $160,000 - 6,000 units= $210,000 - 6,000 units= $204,000June production = 204,000/5 = 40,800 units

The Following Forecasted Sales Pertain to Rapid City Finished Goods Inventory as of May 31 6,000 Units Rapid

The Following Forecasted Sales Pertain to Rapid City Finished Goods Inventory as of May 31 6,000 Units
Rapid