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.
| 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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