Harris Inc., has budgeted sales in units for the next five months as follows: Past experience has shown that the ending inventory for each month should be equal to 20% of the next month's sales in units. The inventory on May 31 contained 1,880 units. The company needs to prepare a production budget for the next five months. The beginning inventory for September should be:
A)820 units
B)1,880 units
C)1,460 units
D)1,080 units

Question

Harris Inc., has budgeted sales in units for the next five months as follows:  Past experience has shown that the ending inventory for each month should be equal to 20% of the next month's sales in units. The inventory on May 31 contained 1,880 units. The company needs to prepare a production budget for the next five months. The beginning inventory for September should be:
A)820 units 
B)1,880 units 
C)1,460 units 
D)1,080 units

Quizplus · Accepted Answer

The Answer of Harris Inc., has budgeted sales in units for the next five months as follows:  Past experience has shown that the ending inventory for each month should be equal to 20% of the next month's sales in units. The inventory on May 31 contained 1,880 units. The company needs to prepare a production budget for the next five months. The beginning inventory for September should be:
A)820 units 
B)1,880 units 
C)1,460 units 
D)1,080 units