Papa Joe, Inc., is preparing its budget for the second quarter of the calendar year. The following unit sales data have been forecasted: Desired ending inventory each month: 30% of next month's estimated sales (in units)
Required:
1. How many units should be budgeted for production in June?
2. How many units should be budgeted for production in the second quarter?

Question

Papa Joe, Inc., is preparing its budget for the second quarter of the calendar year. The following unit sales data have been forecasted:  Desired ending inventory each month: 30% of next month's estimated sales (in units)
Required:
1. How many units should be budgeted for production in June?
2. How many units should be budgeted for production in the second quarter?

Quizplus · Accepted Answer

The Answer of Papa Joe, Inc., is preparing its budget for the second quarter of the calendar year. The following unit sales data have been forecasted:  Desired ending inventory each month: 30% of next month's estimated sales (in units)
Required:
1. How many units should be budgeted for production in June?
2. How many units should be budgeted for production in the second quarter?