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The Following Forecasted Sales Pertain to Reject City Finshed Goods Inventory as of May 31

Question 30

Multiple Choice

The following forecasted sales pertain to Reject City:  Month  Sales  June $160,000 July 200,000 August 120,000 September 80,000\begin{array}{lr}\text { Month } & \text { Sales } \\\hline \text { June } & \$ 160,000 \\\text { July } & 200,000 \\\text { August } & 120,000 \\\text { September } & 80,000\end{array} Finshed goods inventory as of May 31 \quad \quad \quad \quad \quad 6,000 units Reject 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?


A) 36,000 units
B) 42,000 units
C) 50,000 units
D) 82,000 units

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