Noel Enterprises has budgeted sales in units for the next five months as follows:

Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on December 31 contained 400 units. The company needs to prepare a production budget for the second quarter of the year.
-What is the opening inventory in units for April?

Question

Noel Enterprises has budgeted sales in units for the next five months as follows:

Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on December 31 contained 400 units. The company needs to prepare a production budget for the second quarter of the year.
-What is the opening inventory in units for April?

Quizplus · Accepted Answer

The opening inventory for April is 460 units, as it is the amount of inventory available at the start of the month.

Noel Enterprises Has Budgeted Sales in Units for the Next