The following forecasted sales pertain to Shankar Company: The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 30 percent of the next month's sales.
What is the budgeted beginning balance in units for finished goods inventory on July 1?
A) 4,000 units
B) 3,500 units
C) 5,500 units
D) 4,500 units

Question

The following forecasted sales pertain to Shankar Company:   The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 30 percent of the next month's sales.
What is the budgeted beginning balance in units for finished goods inventory on July 1?
A) 4,000 units 
B) 3,500 units 
C) 5,500 units 
D) 4,500 units

Quizplus · Accepted Answer

The Answer of The following forecasted sales pertain to Shankar Company:   The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 30 percent of the next month's sales.
What is the budgeted beginning balance in units for finished goods inventory on July 1?
A) 4,000 units 
B) 3,500 units 
C) 5,500 units 
D) 4,500 units

The Following Forecasted Sales Pertain to Shankar Company