Harden, Inc., has budgeted sales in units for the next five months as follows: June7,000units??July5,300unitsAugust7,100unitsSeptember6,800unitsOctober4,900units?Past experience has shown that the ending inventory for each month should be equal to 15% of the next month's sales in units. The inventory on May 31 contained 1,050 units. The company needs to prepare a production budget for the next five months.?The beginning inventory for September should be:
A. 1,050 units
B. 1,065 units
C. 735 units
D. 1,020 units
Answer: D
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