Foremost Corporation Manufactures Boxes Finished Goods Inventory at the End of December Was 900

question 41

Multiple Choice

Foremost Corporation manufactures boxes. The estimated number of boxes sold for the first three months of the current year are: $$\begin{array} { l l } \text { Month } & \text { Sales } \\\text { January } & 3,000 \\\text { February } & 4,200 \\\text { March } & 3,900\end{array}$$ Finished goods inventory at the end of December was 900 units. Ending finished goods inventory is equal to 20 percent of the next month's sales. General Corporation expects to sell the boxes for $5 each. April sales is projected at 4,500 boxes.
How many boxes should be produced in January?

• A)3,060 boxes
• B)2,940 boxes
• C)3,000 boxes
• D)3,840 boxes

---

Definitions:

Real Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true yield on an investment.

Inflation Rate

The tempo at which the widespread level of prices for goods and services heightens, detracting from the ability to spend.

Zero-Coupon Bonds

Bonds that do not pay periodic interest and are sold at a discount from their face value, with the face value repaid at maturity.

Market Price

The market value at which one can currently engage in buying or selling a service or asset.