Tomorrow Ltd. is a manufacturer that makes one product. It provided the following information to help prepare the master budget for the next four months of operations:

• The budgeted selling price per unit is $71. Budgeted unit sales for June, July, August, and September are 140,100; 144,900; 150,000; and 148,400 units, respectively. All sales are on credit.
• The ending finished goods inventory equals 10% of the following month's sales.
• The ending raw materials inventory equals 5% of the following months raw materials production needs.
• Each unit of finished goods requires 4 ounces of raw materials. The raw materials cost $2.50 per ounce.
• The direct labor wage rate is $8.00 per hour. Each unit of finished goods requires 1.25 direct labor-hours.
• Variable manufacturing overhead is $4.00 per direct labor-hour. Fixed manufacturing overhead is zero.

The estimated finished goods inventory balance at the end of August is closest to:

	a.	$350,250
	b.	$362,250
	c.	$371,000
	d.	$375,000
	e.	$382,000