Budgeted Sales for Parker Corporation for the Second Quarter the Year

Budgeted sales for Parker Corporation for the second quarter the year are shown below:

                                        $\text {\underline{ APRIL} }$                      $\text {\underline{ MAY} }$                                 $\text {\underline{ JUNE} }$

UNITS:                            40,000                            30,000                                    38,000

The company has a policy that requires the ending inventory in each period to be 15 percent of the following period's sales.Assuming that the company follows this policy,what quantity of production should be scheduled for May?

A) 28,800 units
B) 29,700 units
C) 25,000 units
D) 31,200 units

Correct Answer:

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