Roberts Enterprises Has Budgeted Sales in Units for the Next

question 72

Multiple Choice

Roberts Enterprises has budgeted sales in units for the next five months as follows:
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.
-The desired ending inventory for August is:

• A) 530 units
• B) 670 units
• C) 710 units
• D) 370 units

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