Hardy, Inc., has budgeted sales in units for the next five months as follows: Past experience has shown that the ending inventory for each month should be equal to 20% of the next month's sales in units. The inventory on May 31 contained 1,640 units. The company needs to prepare a production budget for the next five months.
-The beginning inventory for September should be:

Question

Quizplus · Accepted Answer

Beginning inventory for September = Ending inventory for August = 20% of September's sales
= 20% F1F1F1S1F1F1F10 3,600 units = 720 units