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11 March, 00:03

Frodic Corporation has budgeted sales and production over the next quarter as follows: July August September Sales in units 40,000 52,000? Production in units 41,200 52,300 56,650 The company has 4,000 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 71,500 units. Budgeted sales for September would be (in units) :

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  1. 11 March, 01:09
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    Sales for September = 55,000 units

    Explanation:

    Giving the following information:

    July August September Sales in units 40,000 52,000?

    Production in units:

    July = 41,200

    August = 52,300

    September = 56,650.

    10% of the next month's sales in units should be on hand at the end of each month.

    Production August:

    Sales August = 52,000

    Ending inventory=?

    Beginning inventory = (52,000*0.10) = 5,200 (-)

    Total = 52,300

    Ending inventory = 52,300 - 52,000 + 5,200

    Ending inventory = 5,500 units

    Sales for September = 5,500/0.10 = 55,000 units
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