Calculate the budgeted beginning balance in units


The following forecasted sales pertain to Isaac Company:
Month Sales

  • September $180,000
  • October 200,000
  • November 160,000
  • December 140,000

Collection pattern:

  • 55 percent in month of sale
  • 45 percent in month following sale
  • Accounts Receivable (August 31) $48,000
  • Finished Goods Inventory (August 31) 19,000

Isaac Company has a selling price of $10 per unit and expects to maintain ending inventories equal to 25 percent of the next month's sales. Calculate the budgeted beginning balance in units for finished goods inventory on November 1?

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Accounting Basics: Calculate the budgeted beginning balance in units
Reference No:- TGS0706781

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