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ABC Ltd., has budgeted sales in units for the next five months as follows: June 7,900 units July 7,100 units August 7,300 units September 8,100
ABC Ltd., has budgeted sales in units for the next five months as follows:
June | 7,900 units |
July | 7,100 units |
August | 7,300 units |
September | 8,100 units |
October | 8,000 units |
Past experience has shown that the ending inventory for each month should be equal to 15% of the next month's sales in units. The inventory on May 31 contained 1,185 units. The company needs to prepare a production budget for the next five months. The beginning inventory for September should be:
1,185 units
1,095 units
1,215 units
1,200 units
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