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:

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:

Quizplus · Accepted Answer

The question does not provide any information about what type of inventory is being referred to. However, as the other options are significantly higher than typical inventory levels for most small businesses, it is safe to assume that they are not the correct answer. Option B, 460 units, is a more reasonable starting inventory for many types of businesses.

Noel Enterprises Has Budgeted Sales in Units for the Next