Simmons Co

question 107

Multiple Choice

Simmons Co.manufactures card tables.The company has a policy of maintaining a finished goods inventory equal to 40 percent of the next month's planned sales.Each card table requires 3 hours of labor.The budgeted labor rate for the coming year is $13 per hour.Planned sales for the months of April,May,and June are respectively 4,000; 5,000; and 3,000 units.The budgeted direct labor cost for June for Simmons Co.is $136,500.What are budgeted sales for July for Simmons Co.?

• A)3,500 units
• B)4,250 units
• C)4,000 units
• D)3,750 units

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Definitions:

Acquisition-Date

The specific date on which one company gains control over another company or business segment, pivotal for accounting and financial consolidation.