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Bengal Co. provides the following sales forecast for the next three months:
July August September
Sales units 11,000 11,700 6,200
Question 1: The company wants to end each month with ending finished goods inventory equal to 30% of the next month's sales. Finished goods inventory on June 30 is 3,300 units. The budgeted production units for August are:
Option 1: 10,050 units.
Option 2: 13,560 units.
Option 3: 9,630 units.
Option 4: 9,840 units.
Option 5: 15,000 units.
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