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Frolic Corporation has budgeted sales and production over the next quarter as follows: July August September Sales in units 70,000 83,000 ? Production in units 73,250 84,750 91,750 ​ The company has 17,500 units of product on hand at July 1. 25% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 97,000 units. Budgeted sales for September would be (in units):

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Answer:

Explanation:

-------------------------------july-------August-----Sept

Sales(unit) - - - - - - - -70000 - - 83000 - - - - - -

Production(Units)----73250 - -84750--91750

October expected sales = 97000

Ending Inventory for August

Production 84750

Less: Sales 83000

Add: Begin Inventory (83000*25%) - - 20750

Ending Inventory 22500

September :

Production in Units 91,750

Add: Beginning Inventory

Working note) 22,500

Less: Ending Inventory

( 97000X25%) (24,250)

Budgeted Sales Units 90,000

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