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On September 30 of Year 1, Julian Company had finished goods inventory of 1,000 units. Starting in October, Julian intends to have an inventory policy

On September 30 of Year 1, Julian Company had finished goods inventory of 1,000 units. Starting in October, Julian intends to have an inventory policy of maintaining ending inventory at the end of every month equal to the next month's sales. For example, ending inventory at the end of October should be equal to forecasted sales in November.

Forecasted sales for the months October, Year 1 through January, Year 2 are as follows.

October2,300 units

November3,000 units

December1,000 units

January700 units

What is the amount of budgeted PRODUCTION forOctober?

  • 3,300 units
  • 4,300 units
  • 5,300 units
  • 2,000 units
  • 3,000 units

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