#18

ABC Ltd., has budgeted sales in units for the next five months as follows:

June	7,300 units
July	6,500 units
August	6,700 units
September	7,500 units
October	7,400 units

Past experience has shown that the ending inventory for each month should be equal to 14% of the next month's sales in units. The inventory on May 31 contained 1,022 units. The company needs to prepare a production budget for the next five months.

The beginning inventory for September should be:

a. 938 units

b. 1,022 units

c. 1,050 units

d. 1,036 units