Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:

Sales in Units

July 30,000

August 44,000

September 63,000

October 47,000

The company is now in the process of preparing a production budget for the third quarter.Past experience has shown that end-of-month finished good inventories must equal 15% of the next month's sales.The inventory at the end of June was 4,500 units.

3. The desired ending inventory for July is:

1. 4,500 units
2. 30,000 units
3. 6,600 units
4. 675 units

4. The desired ending inventory for August is:

1. 44,000 units
2. 30,000 units
3. 6,600 units
4. 9,450 units