Prasojo,Inc. is preparing budgets for the quarter ending June 30.Budgeted sales for the next five months are: April 20,000 units
May 50,000 units
June 30,000 units
July 25,000 units
August 15,000 units. And The selling price is $10 per unit.
The management of Prasojo, Inc. wants ending inventory to be equal to 20% of the following month’s budgeted sales in units.On March 31, 4,000 units were on hand.