Question

Oozyil623 Corporation's third quarter budgeted sales and production numbers are below: July August September Sales in units 46,500 58,500 ? Production in units 47,050 58,800 63,150 (ID#68805) Oozyil623 has 5,300 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 78,000 units. Q) What are the budgeted sales for September (in units)?

Answer 1

Answer:

the budgeted sales for September is 61,500 units

Explanation:

The computation of the budgeted sales for the month of September is as follows:

let us assume sales for september be  x  

Now as we know that

Units produced in September= Ending Inventory + Units Sold - Beginning inventory

63,150 = [78,000 ×  0.10] + x - [ x × 0.10]

63,150 = 7,800 + x - 0.10 x

55,350 = 0.9x

x = 61,500

Hence, the budgeted sales for September is 61,500 units