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 desired ending inventory for August is:
A) 720 units
B) 460 units
C) 540 units
D) 380 units
Correct Answer:
Verified
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