Friden Company has budgeted sales and production over the next quarter as follows: The company has 20,000 units of product on hand at April 1.A minimum of 20% of the next month's sales needs in units must be on hand at the end of each month.July sales are expected to be 140,000 units.Budgeted sales for June would be (in units):

Question

Quizplus · Accepted Answer

11eaaee8_6710_2bf6_933a_3f80178fd8b5_TB5186_00 Units produced in June = Ending inventory + Units sold - Beginning inventory
156,000 = (140,000 F1F1F1S1F1F1F10 20%) + X - (X F1F1F1S1F1F1F10 20%)
where X = June sales in units
156,000 = 28,000 + 0.8 X
X = 160,000

Friden Company Has Budgeted Sales and Production Over the Next