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Question - 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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