Roberts Enterprises Has Budgeted Sales in Units for the Next

Multiple Choice

Roberts Enterprises has budgeted sales in units for the next five months as follows: $\begin{array} {| l | r | } \hline \text { June } & 4,500 \text { units } \\\hline \text { July } & 7,100 \text { units } \\\hline \text { August } & 5,300 \text { units } \\\hline \text { September } & 6,700 \text { units } \\\hline \text { October } & 3,700 \text { units } \\\hline\end{array}$ 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 May 31 contained 410 units. The company needs to prepare a production budget for the second quarter of the year.




-What is the desired ending inventory for August?

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