Alpha CD Corp. has a policy of maintaining an inventory of finished goods equal to 40 percent of the next month’s budgeted sales. If Alpha CD Corp. plans to produce 6,000 units in June, what are budgeted sales for July? 9,000 units 8,000 units 3,600 units 1,000 units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Alpha CD Corp. has a policy of maintaining an inventory of finished goods equal to 40 percent of the next month’s budgeted sales. If Alpha CD Corp. plans to produce 6,000 units in June, what are budgeted sales for July?

  • 9,000 units
  • 8,000 units
  • 3,600 units
  • 1,000 units
Budgeted sales for the first six months of 2019 for Alpha CD Corp. are listed below:
JANUARY FEBRUARY MARCH
7,000
APRIL
7,000
MAY
5,000
JUNE
4,000
UNITS:
6,000
8,000
Transcribed Image Text:Budgeted sales for the first six months of 2019 for Alpha CD Corp. are listed below: JANUARY FEBRUARY MARCH 7,000 APRIL 7,000 MAY 5,000 JUNE 4,000 UNITS: 6,000 8,000
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