Gorberchev Food Processing Expects to Have 20,000 Units of Finished

question 8

Multiple Choice

Gorberchev Food Processing expects to have 20,000 units of finished goods inventory on hand on March 31 and reports the following expected sales (in units) for the months of April through July:At the end of each month the company desires its ending finished goods inventory to be 20% of the next month's projected sales (in units) .

The budgeted production (in units) for Gorberchev Food Processing for April should be:

• A) 112,000.
• B) 120,000.
• C) 127,200.
• D) 128,000.
• E) 142,000.

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Definitions:

Fraction

A mathematical expression representing the division of one quantity by another; it consists of a numerator and a denominator.

Multiply

The mathematical operation of increasing one number by the value of another, a basic arithmetic function symbolized by the symbol “x” or “*”.

Smaller

Lesser in size, amount, or degree compared to another reference point or object.