Noel Enterprises has budgeted sales in units for the next five months as follows: January 6,800 units February 5,400 units March 7,200 units April 4,600 units May 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 December 31 contained 400 units. The company needs to prepare a production budget for the second quarter of the year. Desired ending inventory in units for March is a. 540 b. 720 c. 380
Noel Enterprises has budgeted sales in units for the next five months as follows: January 6,800 units February 5,400 units March 7,200 units April 4,600 units May 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 December 31 contained 400 units. The company needs to prepare a production budget for the second quarter of the year. Desired ending inventory in units for March is a. 540 b. 720 c. 380
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Noel Enterprises has budgeted sales in units for the next five
months as follows:
January 6,800 units
February 5,400 units
March
7,200 units
April
4,600 units
May
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 December 31 contained 400 units. The company needs to
prepare a production budget for the second quarter of the year.
Desired ending inventory in units for March is
a. 540
b. 720
c. 380
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