The following are the estimated monthly sales and desired ending finished goods inventories for Blushing Company for the fourth quarter ending December 31, as well as the month immediately before and after:

Month	Sales	Ending Inventory
September	30,000 units	8,000 units
October	40,000 units	20% of next months sales
November	50,000 units	20% of next months sales
December	60,000 units	20% of next months sales
January	20,000 units	10% of next months sales

The unit selling price is $25. Materials cost per unit is $5. Direct labor required per unit is 0.1 hour. The direct labor rate is $20.

If the desired ending inventory is 20% of next months sales, the correct formula for determining total units to be produced on the multiperiod production budget is

a.Estimated Sales Units for Period + (20% Estimated Sales Units for Period) (20% Estimated Sales Units of Next Period)

b.Estimated Sales Units for Period + (20% Estimated Sales Units of Next Period) (20% Estimated Sales Units of Current Period)

c.(20% Estimated Sales Units of Next Period) + (80% Estimated Sales Units of Current Period)

d.Estimated Sales Units for Period + (20% Estimated Sales Units of Next Period)