The budgeted units of inventory for March 31

A) would be 46,000 units
B) would be 36,000 units
C) cannot be determined from the data given
D) would be 42,000 units

Question

The budgeted units of inventory for March 31A) would be 46,000 unitsB) would be 36,000 unitsC) cannot be determined from the data givenD) would be 42,000 units

Miguel Gutierrez · Accepted Answer

Final Answer : A, Explanation :  The budgeted units of inventory for March 31 would be 46,000 units. This is because Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following month's sales. April's sales are projected to be 230,000 units, so the desired ending finished goods inventory for March 31 would be 20% of 230,000 units, or 46,000 units.

The budgeted units of inventory for March 31

A) would be 46,000 units
B) would be 36,000 units
C) cannot be determined from the data given
D) would be 42,000 units

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