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 beginning inventory in units for September is:
A)380 units
B)460 units
C)4,600 units
D)720 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 beginning inventory in units for September is:
A)380 units 
B)460 units 
C)4,600 units 
D)720 units

Quizplus · Accepted Answer

The Answer of 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 beginning inventory in units for September is:
A)380 units 
B)460 units 
C)4,600 units 
D)720 units

Noel Enterprises Has Budgeted Sales in Units for the Next