Joseph Company has budgeted sales for the next four months as follows: Budgeted
ID: 2585259 • Letter: J
Question
Joseph Company has budgeted sales for the next four months as follows: Budgeted Sales in Units July 8,200 units August 7,600 units September 8,900 units October 7,100 units Past experience has shown that the ending inventory for each month should be equal to 20% of the next month's expected sales in units. The company is currently preparing a production budget. Calculate the total number of units budgeted to be produced in September. Do not use the $, decimals, or type the word units after your answer.
Explanation / Answer
Answer is 8540 units
Particulars July August September October Sales 8,200 7,600 8,900 7100 Add: Ending Inventory(20% of next month sale) 1520 1780 1420 Less: Opening Inventory 1520 1780 1420 Budgeted Purchase 9,720 7,860 8,540
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