The Following Forecasted Sales Pertain to Shankar Company Finished Goods Inventory as of April 30
4,000 Units
the

question 99

Multiple Choice

The following forecasted sales pertain to Shankar Company: $$\begin{array} { l l } \text { Month } & \text { Sales } \\\text { May } & \$ 200,000 \\\text { June } & 250,000 \\\text { July } & 150,000 \\\text { August } & 100,000\end{array}$$ Finished goods inventory as of April 30
4,000 units
The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 30 percent of the next month's sales.
What is the budgeted beginning balance in units for finished goods inventory on July 1?

• A)4,000 units
• B)3,500 units
• C)5,500 units
• D)4,500 units

---

Definitions:

Internal Validity

Refers to how well a study is conducted, specifically whether it establishes a causal relationship between variables.

Causal Relationship

A connection between variables where a change in one directly influences the change in another.

Length Of Test

The duration or number of items that constitute a test, influencing factors such as assessment fatigue and comprehensiveness of evaluation.

Horizontal Axis

In a graph or chart, the x-axis running left to right and typically used to represent the independent variable or time period.