Cardinal Company Has Finished Goods Inventory of 55,000 Units on January

question 33

Multiple Choice

Cardinal Company has finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months are: January, 200,000 units; February, 180,000 units; March, 210,000 units; and April, 230,000 units. Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following month's sales.​
-Willow Valley's April sales forecast projects that 7,000 units will sell at a price of $10.50 per unit. The desired ending inventory is 30% higher than the beginning inventory, which was 1,000 units. Budgeted production in April would be

• A)8,000 units
• B)7,000 units
• C)7,300 units
• D)6,300 units

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Definitions:

Ridge

A long, narrow elevated landform often formed by the uplift of the surrounding area or by tectonic activities.

Plucking

A glacial process where rocks and other materials are pulled away from the earth and incorporated into the moving glacier, mainly due to the freezing of water into cracks.

Abrasion

The mechanical scraping of a rock surface by friction between rocks and moving particles during their transport by wind, glacier, waves, gravity, or running water.

Snowflakes

Ice crystals that form in clouds when water vapor freezes, creating unique patterns that fall to the ground as snow.