Jones Manufacturing Jones Manufacturing Sells Unique Decorative Water Fountains

Multiple Choice

Jones Manufacturing Jones Manufacturing sells unique decorative water fountains. The company has prepared the following forecast for the first quarter of 2013:
Ending inventory at December 31, 2012 was budgeted at 300 units. Management would like the desired quantity of finished goods inventory at the end of each month to be equal to 15 percent of next month's budgeted unit sales. April's sales are projected to be 3,200 units.
Each completed unit of finished product requires 2.5 pounds of compounding material at a cost of $4.00 per pound. The company has determined that it needs 20 percent of next month's raw material needs on hand at the end of each month.
Refer to the Jones Manufacturing information above. The total required production of water fountains for the first quarter of 2013 is:

A) 8,800 units
B) 8,020 units
C) 8,620 units
D) 8,980 units