Planning Systems, Inc A Finished Unit Requires One Unit of Material a and Production

question 15

Multiple Choice

Planning Systems, Inc. has forecast the following unit sales and production for the next year, by quarter: $$\begin{array}{l}\begin{array} { l l l l l } & 1 ^ { \text {st } } & 2 ^ { \text {nd } } & 3 ^ { \text {rd } } & 4 ^ { \text {th } } \\\text { Production } & 150 & 160 & 140 & 100 \\\text { Sales } & 120 & 140 & 150 & 120\end{array}\\\text { The firm has beginning inventories as follows: }\\\begin{array} { l l } \text { Finished goods } & 50 \text { units } \\\text { Direct material A } & 100 \\\text { Direct material B } & 100\end{array}\end{array}$$ 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 inventory for material A for quarter 2?

• A) 24
• B) 28
• C) 30
• D) 100

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Definitions:

Denoted

Denoted refers to the act of symbolically representing something - for example, variables in mathematical equations or formulas are often denoted by letters or symbols.

Null Hypothesis

A statement or hypothesis set for statistical testing, suggesting no significant effect or relationship between variables.

Population Parameter

A characteristic or measure that describes an aspect of an entire population, such as its mean or variance.

Value

The importance, worth, or usefulness of something or a numerical quantity assigned to a variable.