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The Sales Budget (in units) for Cauldron Ltd. for the first four months of 2019 is given below for propane heaters manufactured by Cauldron:
January 21,000February 36,000March 61,000April 41,000
Cauldron Ltd.'s inventory of finished goods at the end of each month should equal 20% of the next month's sales. However, on December 31, 2018, the finished goods inventory totaled only 4,000 units.
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