12

Marlow Company produces hand tools. A production budget for the next four months is as follows: March 10,800 units, April 14,190, May 16,200, and June 21,500. Marlow Companys ending finished goods inventory policy is 15% of the following months sales. Marlow plans to sell 16,400 units in May. What is budgeted ending inventory for March?

Multiple Choice

• 2,129

• 2,430

• 2,070

• 1,620