Jackson Company Has a Policy of Maintaining an Inventory of Finished

question 105

Multiple Choice

Jackson Company has a policy of maintaining an inventory of finished goods equal to 30 percent of the following month's sales.For the forthcoming month of March,Jackson has budgeted the beginning inventory at 30,000 units and the ending inventory at 33,000 units.This suggests that

• A)February sales are budgeted at 10,000 units less than March sales.
• B)March sales are budgeted at 10,000 units less than April sales.
• C)February sales are budgeted at 3,000 units less than March sales.
• D)March sales are budgeted at 3,000 units less than April sales.

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