Keegan Company Manufactures a Single Product and Has a JIT

Multiple Choice

Keegan Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 20,000 units. June and July sales are estimated to be 280,000 and 290,000 units, respectively. Compute the number of units to be produced that would appear on the company's production budget for the month of June.

A) 288,000.
B) 260,000.
C) 289,000.
D) 280,000.
E) 309,000.