Nobesuthu Pty (Ltd) budgeted to sell 210 000 units of finished product in April and anticipate
a growth rate in sales of 10% per month. The desired monthly closing inventory in units of
finished product is 20% of the following month's budgeted sales. There are 150 000 finished
units on 31 March.
Required:
Calculate the following and choose the correct answer from the options provided:
⚫ number of units to be produced in May 235 620 units
⚫ closing inventory in units for June 55
228 000 units
210 000 units
235 620 units
150 000 units