Reference: 07-08
Roberts Enterprises Has Budgeted Sales in Units for the Next

Reference: 07-08
Roberts Enterprises has budgeted sales in units for the next five months as follows: $$\begin{array} { | l | l | } \hline \text { June } & 4,500 \text { units } \\\hline \text { July } & 7,100 \text { units } \\\hline \text { August } & 5,300 \text { units } \\\hline \text { September } & 6,700 \text { units } \\\hline \text { October } & 3,700 \text { units } \\\hline\end{array}$$ 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 410 units. The company needs to prepare a production budget for the second quarter of the year.
-The desired ending inventory in units for August is:

A) 370.
B) 670.
C) 710.
D) 530.

Correct Answer:

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