Determine the budgeted units of production for february

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Use the information below for Cardinal Company to answer the question that follow.

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. Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following month's sales.

Problem 1: Determine the budgeted units of production for February.

Reference no: EM132679377

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