Young Enterprises Has Budgeted Sales in Units for the Next

Young Enterprises has budgeted sales in units for the next five months as follows:

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 fell short of this goal since it contained only 400 units. The company needs to prepare a Production Budget for the next five months.
-The desired ending inventory for August is:

A) 540 units
B) 680 units
C) 720 units
D) 380 units

Correct Answer:

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