Harris Inc

Multiple Choice

Harris Inc., has budgeted sales in units for the next five months as follows: Past experience has shown that the ending inventory for each month should be equal to 20% of the next month's sales in units. The inventory on May 31 contained 1,880 units. The company needs to prepare a production budget for the next five months. The beginning inventory for September should be:

A) 820 units
B) 1,880 units
C) 1,460 units
D) 1,080 units