Hardin Inc., has budgeted sales in units for the next five months as follows: Ju

Question

Hardin Inc., has budgeted sales in units for the next five months as follows:

June 7,400 units
July 6,600 units
August 6,800 units
September 7,600 units
October 7,500 units

Past experience has shown that the ending inventory for each month should be equal to 12% of the next month's sales in units. The inventory on May 31 contained 888 units. The company needs to prepare a production budget for the next five months.



The beginning inventory for September should be:
7,328 units
912 units
7,412 units
888 units


PLEASE SHOW WORK.

Explanation / Answer

912 units. Sept beginning is Aug ending and Aug ending is .12*7600(Sep sales)= 912

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