Roberts Enterprises has budgeted sales in units for the next five months as follows: June 4,510 units July August 7,150 units 5,310 units September 6,720 units October 3,710 units Past experience has shown that the ending inventory for each month must be equal to 20% of the next month's sales in units. The inventory on May 31 contained 902 units. The company needs to prepare a production budget for the second quarter of the year. The total number of units to be produced in July is: Multiple Choice 8,212 units 7150 units 7,502 units 6,782 units

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...
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Roberts Enterprises has budgeted sales in units for the next five months as follows:
June
4,510 units
July
August
September
October
7,150 units
5,310 units
6,720 units
3,710 units
Past experience has shown that the ending inventory for each month must be equal to 20% of the next month's sales in units. The inventory on May 31 contained 902 units. The company needs to prepare a
production budget for the second quarter of the year.
The total number of units to be produced in July is:
Multiple Choice
8.212 units
7,150 units
7,502 units
6,782 units
Transcribed Image Text:Roberts Enterprises has budgeted sales in units for the next five months as follows: June 4,510 units July August September October 7,150 units 5,310 units 6,720 units 3,710 units Past experience has shown that the ending inventory for each month must be equal to 20% of the next month's sales in units. The inventory on May 31 contained 902 units. The company needs to prepare a production budget for the second quarter of the year. The total number of units to be produced in July is: Multiple Choice 8.212 units 7,150 units 7,502 units 6,782 units
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