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Frolic Corporation has budgeted sales and production over the next quarter as follows: July August September...

Frolic Corporation has budgeted sales and production over the next quarter as follows:

July August September
Sales in units 48,500 60,500 ?
Production in units 48,850 60,800 65,150

The company has 5,700 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 80,000 units. Budgeted sales for September would be (in units):

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Answer #1

Budgeted sales of September would be 63500

- 6050 August month Clossing stock . Opening Stock (August) (60500 X10%) Add: Production Sub Total Less: Sales in Units 60800

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