Young Enterprises 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 10% of the next month's sales in units. The inventory on May 31 fell short of this goal since it contained only 400 units. The company needs to prepare a Production Budget for the next five months.
-The beginning inventory in units for September should be:

Question

Young Enterprises 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 10% of the next month's sales in units. The inventory on May 31 fell short of this goal since it contained only 400 units. The company needs to prepare a Production Budget for the next five months.
-The beginning inventory in units for September should be:

Quizplus · Accepted Answer

Beginning inventory for September = Ending inventory for August = 10% of September sales = 10% F1F1F1S1F1F1F10 6,800 units = 680 units

Young Enterprises Has Budgeted Sales in Units for the Next