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Question - Madison Manufacturing is preparing a production budget. It has budgeted sales in units as follows:
June 4,500 units
July 7,100 units
August 5,300 units
September 6,700 units
October 3,700 units
Each month's ending inventory should be equal to 10% of the next month's sales in units. The inventory on May 31 contained 410 units.
Required - On the production budget, determine the desired ending inventory for August?
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