Cardinal Company had a finished goods inventory of 55000 units on January 1 Its projected sales for the next four months were January 200000 units; February 180000 units; March 210000 units; and Apri

The desired ending finished goods inventory for February would be 20% of March's sales, or 0.2(210,000) = 42,000 units.

Therefore, the total units needed to meet sales and maintain desired ending inventory for January would be:

200,000 (January sales) + 42,000 (desired ending inventory for February) - 55,000 (beginning inventory) = 187,000 units

Since there are no units carried over from December, the budgeted units of production for January would be 187,000 units.

So the answer is c. 181,000