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Cardinal Company Has Finished Goods Inventory of 55,000 Units on January

Question 112

Multiple Choice

Cardinal Company has finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months are: January, 200,000 units; February, 180,000 units; March, 210,000 units; and April, 230,000 units. Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following month's sales.​
-The budgeted units of production for January would be


A) 236,000 units
B) 181,000 units
C) 200,000 units
D) 219,000 units

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