At January 1, 2012, Barry, Inc

question 87

Multiple Choice

At January 1, 2012, Barry, Inc.has beginning inventory of 5,000 widgets.Barry estimates it will sell 40,000 units during the first quarter of 2012 with a 5% increase in sales each quarter.Barry's policy is to maintain an ending inventory equal to 10% of the next quarter's sales.Each widget costs $2 and is sold for $3.How much is budgeted sales revenue for the third quarter of 2012?

• A)$44,100
• B)$120,000
• C)$132,300
• D)$119,070

Comprehend the conditions that lead to shortages in replenishment cycles.

Identify and explain the differences between continuous and periodic review policies for inventory replenishment.

Recognize the advantages of inventory aggregation strategies and their impact on inventory management.

Understand the role of information centralization in managing inventory across multiple locations.