Young Enterprises has budgeted sales in units for the next five months as follows:
June ................................4,600 units
July .................................7,200 units
August ...........................5,400 units
September ......................6,800 units
October ..........................3,800 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 fell short of this goal since it contained only 400 units. The company needs to prepare a Production Budget for the next four months.
a. The beginning inventory in units for September should be:
b. The total number of units to be produced in July is:
c. The desired ending inventory for August is: