Final answer:
The desired ending inventory for the quarter is equal to the desired ending inventory for the last month because it sets up the starting inventory for the next period and reflects consistent production and sales forecasting. The correct option is c.
Step-by-step explanation:
The desired ending inventory for the quarter is typically equal to the desired ending inventory for the last month. When a Treadwell Corp. manager creates a production budget for the upcoming period, they generally aim to end the quarter with an inventory level that is sufficient to meet the needs at the beginning of the following period.
This means that the ending inventory figure for the last month becomes the starting inventory figure for the first month of the next quarter. The desired ending inventory reflects the production needs and sales forecasts, and is often set at a level to ensure smooth operations and customer satisfaction without overproducing. The correct option is c.