Barley Enterprises Has Budgeted Unit Sales for the Next Four

Barley Enterprises has budgeted unit sales for the next four months as follows:
$\begin{array} { |l | r | } \hline \text { October } & 4,800 \text { units } \\\hline \text { November } & 5,800 \text { units } \\\hline \text { December } & 6,400 \text { units } \\\hline \text { January } & 5,200 \text { units } \\\hline\end{array}$ 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.


-What is the desired ending inventory for December?

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

Correct Answer:

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