The Following Forecasted Sales Pertain to Alicia Company Finished Goods Inventory as of March 31 4,000 Units
the

question 178

Multiple Choice

The following forecasted sales pertain to Alicia Company: $$\begin{array} { l r } \text { Month } & \text { Sales } \\\text { April } & \$ 200,000 \\\text { May } & 250,000 \\\text { June } & 150,000 \\\text { July } & 100,000\end{array}$$ Finished goods inventory as of March 31 4,000 units
The company has a selling price of $20 per unit and expects to maintain ending inventories equal to 20 percent of the next month's sales.
How many units are expected to be produced in April?

• A)8,500 units
• B)12,500 units
• C)14,500 units
• D)10,500 units