Bear Inc Estimates Its Sales at 200000 Units in the First

question 97

Multiple Choice

Bear Inc. estimates its sales at 200000 units in the first quarter and that sales will increase by 20000 units each quarter over the year. They have and desire a 25% ending inventory of finished goods. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at

• A) 245000.
• B) 230000.
• C) 305000.
• D) 240000.

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Definitions:

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