Falcon Enterprises Expects the Following Unit Sales Over the Next

Falcon Enterprises expects the following unit sales over the next five months:
$$\begin{array} { | l | r | } \hline \text { Month } & { \text { Unit Sales } } \\\hline \text { April } & 400,000 \\\hline \text { May } & 480,000 \\\hline \text { June } & 540,000 \\\hline \text { July } & 600,000 \\\hline \text { August } & 560,000 \\\hline\end{array}$$
Falcon's goal is to maintain an inventory equal to 20% of next month's sales requirements. March 31 inventory is projected to be 70,000 units.
Required:
Prepare a purchases budget (in units) for Falcon for as many months as is possible based on data provided. Assume a 30-day month.

Correct Answer:

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Ending Inventories: April: 48...

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