Question

Young Enterprises has budgeted sales in units for the next five months as follows:The desired ending inventory for August is:

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

Answer 1

To determine the desired ending inventory for August, calculate the total sales for the next five months and subtract the desired ending inventory for the months before August. The desired ending inventory for August is 720 units.

To determine the desired ending inventory for August, we need to calculate the total sales for the next five months and subtract the desired ending inventory for the months before August.

1. First, let's calculate the total sales for the next five months: August + September + October + November + December = Total Sales
2. Next, subtract the desired ending inventory for the months before August from the total sales to find the desired ending inventory for August.

Using the given information, the desired ending inventory for August is option C: 720 units.