Kenner's Ending Inventory Policy Is That SR200 Should Have 15

question 45

Multiple Choice

$\begin{array}{lrr}&\text { SR200 }&TX 500\\\text { May } & 8,000 & 20,000 \\\text { June } & 13,000 & 32,000 \\\text { July } & 11,000 & 39,000 \\\text { August } & 18,000 & 46,000\end{array}$ Kenner's ending inventory policy is that SR200 should have 15% of next month's sales in ending inventory and TX500 should have 40% of next month's sales in ending inventory. On May 1, there were 1,200 units of SR200 and 9,000 units of TX500.TX500 requires 6 units of component A. (SR200 does not use component A.) There were 30,000 units of component A in inventory on May 1. Kenner wants to have 20% of the following month's production needs in inventory for Component A.
-Refer to Figure 9-2. How many units of TX500 are budgeted for production in June?

• A) 47,600
• B) 34,800
• C) 32,000
• D) 45,000
• E) 12,800

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Definitions:

Protein Synthesis

The process by which cells build proteins, consisting of transcription (DNA to mRNA) and translation (mRNA to protein).

Vitamin B6

A water-soluble vitamin crucial for brain development and function and helps the body convert food into energy.

Peptidase

An enzyme that breaks down peptides into amino acids by cleaving the peptide bonds between amino acids.

Intestinal Lipase

An enzyme that digests fat.