Harden, Inc., has budgeted sales in units for the next five months as follows: J

Question

Harden, Inc., has budgeted sales in units for the next five months as follows: June 7,400 units July 5,700 units August 7,500 units September 7,200 units October 5,300 units Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory on May 31 contained 740 units. The company needs to prepare a production budget for the next five months. The beginning inventory for September should be: Multiple Choice 750 units 530 units 740 units 720 units

Explanation / Answer

beginning inventory for September=10%*September sales

which is equal to

=(10%*7200 )

=720 units.

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