Ben Company 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.
- What is the planned ending inventory of finished goods for May?
A)3,200 units
B)4,000 units
C)5,000 units
D)5,600 units.

Question

Quizplus · Accepted Answer

The planned ending inventory for May is designed to be 20% of June's planned sales. June's planned sales are 28,000 units, so 20% of 28,000 units is 5,600 units.

Ben Company Has the Following Sales Forecast for the Next