26.) Noel Enterprises has budgeted sales in units for the next five months as follows: June 6800 july 5400 august 7200 september 4600 october 3800 Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on May 31 contained 400 units. The company needs to prepare a production budget for the second quarter of the year. The total number of units to be produced in July is: 5,580 units 5,400 units 6,120 units 5,220 units 1.Under absorption costing, fixed manufacturing overhead costs: are deferred in inventory when production exceeds sales. are always treated as period costs. are released from inventory when production exceeds sales. are ignored.