Rochor & Co has the following sales forecast for the next quarter: April, 20,000 units; May, 24,000 units; June, 28,000 units. Sales totalled 16,000 units in March. The March finished goods inventory was 4,000 units. End-of- month finished goods inventory levels are planned to be equal to 20 percent of the next month's planned sales. How many units would be produced in May? Question 16 options: 1) 5,600 units 2) 4,800 units 3) 24,800 units 4) 20,800 units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Rochor & Co has the following sales forecast for the next quarter: April, 20,000 units; May, 24,000 units; June, 28,000 units. Sales totalled 16,000 units in March. The March finished goods inventory was 4,000 units. End-of- month finished goods inventory levels are planned to be equal to 20 percent of the next month's planned sales.

How many units would be produced in May?
Question 16 options:

1)

5,600 units

2)

4,800 units

3)

24,800 units

4)

20,800 units

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