Planning Systems, Inc The Firm Has Beginning Inventories as Follows

question 127

Multiple Choice

Planning Systems, Inc. has forecast the following unit sales and production for the next year, by quarter: $$\begin{array} { l l l l l } & 1 ^ { \text {st } } & 2 ^ { \text {nd } } & 3 ^ { \text {rd } } & 4 ^ { \text {th } } \\\text { Production } & 150 & 160 & 140 & 100 \\\text { Sales } & 120 & 140 & 150 & 120\end{array}$$ The firm has beginning inventories as follows: $$\begin{array} { l l } \text { Finished goods } & 50 \text { units } \\\text { Direct material A } & 100 \\\text { Direct material B } & 100\end{array}$$
A finished unit requires one unit of material A and two units of material B. There should be enough material on hand at the end of each quarter to meet 20% of the next quarter's production needs. There are no work-in-process inventories.
What is the ending finished goods inventory for quarter 2?

• A) 50
• B) 70
• C) 80
• D) 100

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Definitions:

Marx

Karl Marx, a 19th-century philosopher and economist known for his theories about capitalism, class struggle, and the development of socialist and communist societies.

Overpopulation

A condition where an organism's numbers exceed the carrying capacity of its habitat, often leading to environmental deterioration and a decline in living conditions.

Demographers

Specialists who study population dynamics, including birth rates, mortality rates, and migration trends.

Malthusian Trap

A situation where population growth outpaces agricultural production, leading to periodic famine, poverty, and population decline as described by Thomas Malthus.