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Noel Enterprises has budgeted sales in units for the next five months as follows: June 6,800 units July 5,400 units August 7,200 units September 4,600
Noel Enterprises has budgeted sales in units for the next five months as follows:
June | 6,800 units |
July | 5,400 units |
August | 7,200 units |
September | 4,600 units |
October | 3,800 units |
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 beginning inventory in units for September is:
380 units
460 units
4,600 units
720 units
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