What would be the budgeted inventory for March 31st?A. 46,000B. 36,000C. Cannot be determined from the data givenD. 42,000 The Cardinal Co. had...

The Cardinal Co. has a policy of maintaining inventory
equal to 20% of the next month's estimated sales. According to the information provided,
the estimated sales for January are 200,000 units; for February they are 180,000 units;
for March 210,000 units and for April it is 230,000 units.

As per the company's policy the finished goods inventory
on March 31st should be 20% of the estimated sales for the next month which is April. In
April 230,000 units are estimated to be sold.

This gives
the required inventory as 20% of 230,000 = 0.2*230000 =
46000

The right option is A. The budgeted
inventory for March 31st is 46000.