Reference: 07-07
Barley Enterprises Has Budgeted Unit Sales for the Next

Reference: 07-07
Barley Enterprises has budgeted unit sales for the next four months as follows: $$\begin{array} { | l | l | } \hline \text { October } & 4,800 \text { units } \\\hline \text { November } & 5,800 \text { units } \\\hline \text { December } & 6,400 \text { units } \\\hline \text { January } & 5,200 \text { units } \\\hline\end{array}$$ The ending inventory for each month should be equal to 15% of the next month's sales in units. The inventory on
September 30 was below this level and contained only 600 units.
-The desired ending inventory in units for December is:

A) 870.
B) 690.
C) 780.
D) 960.

Correct Answer:

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