“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 must be equal to 10% of the next month’s sales in units. The inventory on May 31 contained 400 units. The company needs to prepare a Production Budget for the second quarter of the year. 90. The total number of units to be produced in July is: a. 7,740 units. b. 7,200 units. c. 7,020 units. d. 7,280 units.”,”3Total units to be produced in July: July Sales 7,200 + Desired ending inventory (5,400 x 10%) 540 7,740- Beginning inventory = Desired ending inventory for June (7200 x 10%) 720 Units to be graded in July 7
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