The Following Forecasted Sales Pertain to Rapid City Finished Goods Inventory as of May 31
6,000 Units
Rapid

Multiple Choice

The following forecasted sales pertain to Rapid City: $$\begin{array} { l r } \text { Month } & \text { Sales } \\\text { June } & \$ 160,000 \\\text { July } & 200,000 \\\text { August } & 120,000 \\\text { September } & 80,000\end{array}$$ Finished goods inventory as of May 31
6,000 units
Rapid City has a selling price of $5 per unit and expects to maintain ending inventories equal to 25 percent of next month's sales.
What is the budgeted beginning balance in units for finished goods inventory on August 1?

A) 8,000 units
B) 6,000 units
C) 10,000 units
D) 6,400 units