Cahuilla Corporation Predicts the Following Sales in Units for the Coming

question 172

Multiple Choice

Cahuilla Corporation predicts the following sales in units for the coming four months: Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 96 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 200 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be:

• A) 1,422 lbs.
• B) 288 lbs.
• C) 1,854 lbs.
• D) 276 lbs.
• E) 1,008 lbs.

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Definitions:

Normal Curve

A symmetrical, bell-shaped curve representing the distribution of values, scores, or measurements where most occurrences take place near the average.

Scores

Quantitative values assigned or obtained to represent certain characteristics or outcomes in data.

Standard Deviations

A measure of the dispersion or spread of a set of values in a dataset, indicating how much the values deviate from the mean.

Deviation

In statistics, it refers to how far a particular data point is from the mean of the data set.