The company requires that ending inventory be equivalent to 20% of the following months sales. If each unit is budgeted to have a cost of $4.50, the budgeted balance in the companys ending inventory account at March 31st will be: *

$14,400

$18,000

$4,000

$12,000

The sales budget for the Johnson Company indicates the following units to be sold: January 10,000 February 8.000 March 12,000 April 16,000