Reference no: EM133141634

Question - Santa Barbara Company has a policy of maintaining an inventory of finished goods equal to 25% of the following month's sales units. For the forthcoming month of June, the budgeted beginning inventory is at 20,000 units and the ending inventory at 22,000 units.

The following are the budgeted sales for the months of August- October:

August: 90,000 units

September: 92,000 units

October: 94,500 units

October ending inventory is estimated to be at 20% less than September's Operating Expenses were estimated as follow:

Selling expense is at 2.75% of sales

Salary expense is at $5,000+3% of sales

General and Administrative expense is at $40,000 per month

Required - Based on the given data, calculate cost of sales for the month of June, total operating expenses for the month of June and number of units available for sale for the month of July.