LB Enterprises (LB) is preparing its budget for the first quarter of 2019. LB's balance sheet as of December 31, 2018 is as follows: Assets Liabilities Cash $5,000 Accounts Payable $9500 Accounts Recievable 28,000 Inventories Direct Materials 8,100 Finished Goods (500 Units) 16,870 Stockholders Equity Equipment - gross 45,000 Accumulated depreciation 15.000 Common Stock $15,000 Net Equipment 30,000 Retained Earnings 63,470 Total Assets $87,970 Total Liabilities and $87,960 Equity LB sells one product for $45/unit. The Company forecasts that it will sell 2,000; 1,500; 1,600; and 1,700 units in January, February, March and April, respectively. • Sales to customers are all on credit. 40% of the cash for these sales is collected in the month of the sale and the remaining 60% is collected in the following month. LB wants finished goods inventory equal to 25% of the next month's sales on hand at the end of each month. LB wants direct materials equal to 75% of the current month's production requirements on hand at the end of each month. Each unit of finished goods inventory requires 2.5 pound of direct materials at $3 per pound and 2 hours of direct labor at $10.00 per hour. Direct material purchases are paid 15% in the month they are purchased and 85% in the following month. All other costs of the company are paid for as they are incurred. Manufacturing Overhead consists of the following o Indirect Materials (S.15/unit) o Indirect Labor (S.40/unit) Other ($.35/unit) Production supervisors' salaries - $6,000 per month Depreciation - $950 per month Other fixed - $2,000 per month Selling and Adminitstraion costs consist of the following Commissions ($1.10/unit sold) Freight (S.15/unit sold) Salaries - $8,500 per month Rent - $800 per month Depreciation $150 per month LB will purchase new equipment at a cost of $10,000 on March 31, 2019 10. What is the balance in Finished goods inventory at March 31, 2019 (hint – you have the 'per unit' direct materials + direct labor + mfg overhead and you have the # of units in ending inventory)? A) $ 15,244 B) $ 13,496 C) $ 14,341 D) $ 16,870