15. Information from the sales budget of the CMS Company is below: Quarter Units 1 5,000 2 7,000 3 8,000 4 10,000 The company started the year with 1,200 units in inventory. Management desires an ending inventory each quarter equal to 20% of the next quarter”s sales. How many units should be produced in the third quarter? A. 5,200 B. 7,200 C. 8,000 D. 8,400 E. none of the above 16. All of the following statements are true except: A. Costs may be classified by many different cost classifications. B. Product costs can be classified as one of three types: direct materials, direct labor, or overhead. C. Administrative expenses are normally product costs. D. Indirect materials are accounted for as factory overhead because they are not easily traced to specific units or batches of production. E. Product costs are expenditures necessary and integral to finished products. 17. Which of the following represents a balance sheet in proper form? 18. In CVP analysis, what does the term “cos