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What is the budgeted units of production for february

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Reference no: EM131790015

Problem

The Cardinal Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were: January - 200,000 units; February - 180,000 units; March - 210,000 units; and April - 230,000 units. The Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following months sales.

What is the budgeted units of production for February?
a. 222,000
b. 181,000
c. 186,000
d. 174,000.

Reference no: EM131790015

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