Question 17

Reference: 09-08

Roberts Enterprises has budgeted sales in units for the next five months as follows:

June4,500 unitsJuly7,100 unitsAugust5,300 unitsSeptember6,700 unitsOctober3,700 unitsPast 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 410 units. The company needs to prepare a production budget for the second quarter of the year.

What is the total number of units to be produced in July?

Question 17 options:

A)

7,630 units.

B)

7,280 units.

C)

6,920 units.

D)

7,100 units.