Asked by Nyasia Green on Jul 11, 2024

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The desired ending inventory in units for August is:

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

Budgeted Sales

The projected amount of sales revenue that a company plans to achieve in a specific period, based on market analysis and company goals.

Ending Inventory

The monetary amount of merchandise on hand for sale when an accounting cycle concludes, established by the initial stock plus purchases less the expenses of goods sold.

Production Budget

An estimate of the total units to be produced in a given period, factoring in expected sales and inventory requirements.

  • Analyze and prepare production budgets based on sales forecasts and inventory requirements.
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Verified Answer

RK
Rohit KurianJul 17, 2024
Final Answer :
B
Explanation :
The desired ending inventory for August must be equal to 10% of September's sales, which is 10% of 6,700 units = 670 units.