Nobesuthu Pty (Ltd) budgeted to sell 210 000 units of finished product in April and anticipate
a growth rate in sales of 10% per month. The desired monthly closing inventory in units of
finished product is 20% of the following month's budgeted sales. There are 150 000 finished
units on 31 March.
Required:
Calculate the following and choose the correct answer from the options provided:
âš« number of units to be produced in May 235 620 units
âš« closing inventory in units for June 55
228 000 units
210 000 units
235 620 units
150 000 units