Question

Clara Inc. budgets to sell 10,400 units in April, 13,000 unit in May, and 16,100 units in June. The company maintains an ending finished goods inventory equal to 20% of budgeted sales in units for the next month. April 1 beginning inventory is projected to be 2,080 units. How many units will the company produce in May

Answer 1

16,720 units

Step-by-step explanation:

Production Budget = Budgeted Sales + Budgeted Closing inventory - Budgeted Opening inventory

= 16,100 + 3,220 - 2,600

= 16,720 units

the company produce in May 16,720 units