Answer:
13,000 units
Explanation:
Given that,
Total production in April = 13,300 units
Total sales in May = 16,000 units
Ending finished goods inventory = 10% of the following month’s sales
Therefore, the number of units sold in April is determined by deducting ending finished goods inventory of April from the total production of units in April and beginning finished goods inventory.
Let the sales in April be x,
The beginning finished goods inventory of April is same as the ending inventory of March.
Ending finished goods inventory in March:
= 10% of sales in April
= 0.1 x
Ending finished goods inventory in April:
= 10% of sales in May
= 0.1 × 16,000 units
= 1,600 units
Therefore, the number of units in April is calculated as follows:
Ending inventory = Total production in April + Beginning inventory of April - Sales
1,600 units = 13,300 units + 0.1x - x
0.9x = 13,300 - 1,600
0.9x = 11,700
x = 13,000 units
Hence, the number of units sold in April is 13,000.
