The Following Forecasted Sales Pertain to Shankar Company Finished Goods Inventory as of April 30
4,000 Units
the

Multiple Choice

The following forecasted sales pertain to Shankar Company: $$\begin{array} { l l } \text { Month } & \text { Sales } \\\text { May } & \$ 200,000 \\\text { June } & 250,000 \\\text { July } & 150,000 \\\text { August } & 100,000\end{array}$$ Finished goods inventory as of April 30
4,000 units
The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 30 percent of the next month's sales.
What is the budgeted beginning balance in units for finished goods inventory on July 1?

A) 4,000 units
B) 3,500 units
C) 5,500 units
D) 4,500 units