Question

Zahn Co. predicts sales of 230 units in May and 340 units in June. Each month’s...

Zahn Co. predicts sales of 230 units in May and 340 units in June. Each month’s ending inventory should be 25% of the next month’s sales. The April 30 ending finished goods inventory is 80 units. Compute budgeted production (in units) for May.

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Answer #1
May June
Sale 230 340
Ending inventory 85
340*.25
Opening stock 80
Production in May Sales+Closing Stock- Opening Stock
230+85-80
235

Hence, answer is 235 uints

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