16 Part A:. Brandon, Inc. sells a single product. Forecasted sales are July 4,000 units, August 7,000 units, September 7,500 units. Company's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,500 units. What are budgeted units for August? a) 6,600 units b) 7,400 units c) 7,200 units d) 1,400 units PART B:. Albertville Inc. produces leather handbags. The production budget for the next four months is: July 6,000 units, August 8,000, September 7,500, October 8,000. Each handbag requires 0.5 square meters of leather. Albertville Inc's leather inventory policy is 30% of next month's production needs. On July 1 leather inventory was expected to be 2,000 square meters. Leather is expected to cost $5.00 per square meter in June, but go up to $6.00 per square meter in July. What is the expected cost of leather purchases in July? a) $13,100 b) $13,200 c) $16,200 d) $16,300