The Sales Budget for the Johnson Company Indicates the Following $$\begin{array} { l l } \text { January } & 10,000 \\\text { February } & 8,000 \\\text { March } & 12,000 \\\text { April } & 16,000\end{array}$$

Multiple Choice

The sales budget for the Johnson Company indicates the following units to be sold: $$\begin{array} { l l } \text { January } & 10,000 \\\text { February } & 8,000 \\\text { March } & 12,000 \\\text { April } & 16,000\end{array}$$ The company requires that ending inventory be equivalent to 20% of the following month's sales.If each unit is budgeted to have a cost of $4.50, the budgeted balance in the company's ending inventory account at March 31^st will be:

A) $4,000
B) $14,400
C) $12,000
D) $18,000