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Roberts Enterprises has budgeted sales in units for the next five months as follows: June 4,500 units July 7,100 units August 5,300 units September 6,700

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

June 4,500 units
July 7,100 units
August 5,300 units
September 6,700 units
October 3,700 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 410 units. The company needs to prepare a production budget for the second quarter of the year.

What is the desired ending inventory for August?

Multiple Choice

  • 710 units.

  • 370 units.

  • 530 units.

  • 670 units.

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