For the following questions, circle the best response.
Long Company’s budgeted sales are as follows:
The ending inventory of finished goods for each month must be equal to 40% of the next month’s budgeted unit sales. Finished goods inventory on January 1 was 600 units. Calculate the number of units scheduled for production in March. (Hint: Use the cost of goods sold model.)
a. 1,275.
b. 1,400.
c. 1,525.
d. 1,625.
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