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Harden, Inc., has budgeted sales in units for the next five months as follows: June 7,500 units July 5,800 units August 7,600 units September 7,300
Harden, Inc., has budgeted sales in units for the next five months as follows:
June | 7,500 | units |
July | 5,800 | units |
August | 7,600 | units |
September | 7,300 | units |
October | 5,400 | units |
Past experience has shown that the ending inventory for each month should be equal to 20% of the next month's sales in units. The inventory on May 31 contained 1,500 units. The company needs to prepare a production budget for the next five months.
The beginning inventory for September should be:
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