Noel 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 400 units.The company needs to prepare a production budget for the second quarter of the year. The total number of units to be produced in July is:
A)5,580 units
B)5,400 units
C)6,120 units
D)5,220 units

Question

Noel 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 400 units.The company needs to prepare a production budget for the second quarter of the year. The total number of units to be produced in July is:
A)5,580 units 
B)5,400 units 
C)6,120 units 
D)5,220 units

Quizplus · Accepted Answer

Production Budget:
 11eaa3fe_3284_18c8_908b_b16f313ba34b_TB2461_00

Noel Enterprises Has Budgeted Sales in Units for the Next