Trago Company Manufactures a Single Product and Has a JIT

question 150

Multiple Choice

Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 5% of the next month's sales. It estimates that May's ending inventory will consist of 14,000 units. June and July sales are estimated to be 280,000 and 290,000 units, respectively. Trago assigns variable overhead at a rate of $1.80 per unit of production. Fixed overhead equals $400,000 per month. Compute the number of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for the month of June.

• A) $920,200.
• B) $904,900.
• C) $930,100.
• D) $922,000.
• E) $878,800.

Identify financial components necessary for future value calculations.

Understand the significance of the time value of money in financial decisions.

Recognize the concept and computation of interest.

Understand the process of discounting and its applications in financial computations.

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Definitions:

Cries

Vocalizations or sounds made as expressions of distress, pain, or discomfort.

Truth-functional

Pertaining to logical operations whose truth values depend solely on the truth values of their component propositions.

Quantifier

A term in logic that specifies the quantity of specimens in the domain of discourse that satisfy an open formula.

Atomic

Relating to atoms, the smallest particles of an element that retain the properties of that element.