Next Year's Sales Forecast Shows That 20,000 Units of Product

question 130

Multiple Choice

Next year's sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of Product B is 3,000 units.
-Gilbert's expects its September sales to be 20% higher than its August sales of $150,000. Manufacturing costs were $100,000 in August and are expected to be $120,000 in September. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. Payments of manufacturing costs are as follows: 25% in the month of production and 75% in the following month. The beginning cash balance on September 1 is $7,500. The ending balance on September 30 would be

• A)$61,500
• B)$75,000
• C)$72,300
• D)$71,500

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Definitions:

Drooling

The unintentional spillage of saliva from the mouth, which can be due to various medical conditions or developmental stages.

Tardive Dyskinesia

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Fluphenazine Decanoate

A long-acting antipsychotic medication used in the treatment of schizophrenia and other psychotic disorders.

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