Barley Enterprises has budgeted unit sales for the next four months as follows:
$\begin{array} { |l | r | }
\hline \text { October } & 4,800 \text { units } \
\hline \text { November } & 5,800 \text { units } \
\hline \text { December } & 6,400 \text { units } \
\hline \text { January } & 5,200 \text { units } \
\hline
\end{array}$The ending inventory for each month should be equal to 15% of the next month's sales in units. The inventory on September 30 was below this level and contained only 600 units.

-What is the desired ending inventory for December?

Question

Barley Enterprises has budgeted unit sales for the next four months as follows:
$\begin{array} { |l | r | } 
\hline \text { October } & 4,800 \text { units } \
\hline \text { November } & 5,800 \text { units } \
\hline \text { December } & 6,400 \text { units } \
\hline \text { January } & 5,200 \text { units } \
\hline
\end{array}$The ending inventory for each month should be equal to 15% of the next month's sales in units. The inventory on September 30 was below this level and contained only 600 units.

-What is the desired ending inventory for December?

Quizplus · Accepted Answer

The desired ending inventory for December is 15% of the next month's sales, which is 15% of 5,200 units, or 780 units.

Barley Enterprises Has Budgeted Unit Sales for the Next Four