Robust Resources Expects to Sell 490 Units of Product a and 420

question 142

Multiple Choice

Robust Resources expects to sell 490 units of Product A and 420 units of Product B each day at an average price of $16 for Product A and $27 for Product B.The expected cost for Product A is 41% of its selling price and the expected cost for Product B is 63% of its selling price.Robust Resources has no beginning inventory,but it wants to have a four-day supply of ending inventory for each product.Compute the company's budgeted sales for the next (seven-day) week.(Round the answer to the nearest dollar.)

• A) $10,359
• B) $76,720
• C) $134,260
• D) $19,180

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Definitions:

Consignment

A business arrangement where goods are left in the possession of an authorized third party to sell, but the title to the goods remains with the seller until sold.

Inventory Count

The physical verification of the quantities and condition of items in a company's inventory.

FIFO

This inventory management and valuation method assumes that the oldest products are sold or used first; an acronym for "First In, First Out," detailing a specific approach to inventory and asset management.

Periodic Inventory System

An inventory accounting system where stock levels and cost of goods sold are calculated at the end of an accounting period, rather than being continuously updated.