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

question 40

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. What is the desired ending inventory of component A for May?

• A) 86,000
• B) 180,000
• C) 58,500
• D) 41,760
• E) 30,000

---

Definitions:

Uppercase Letters

Capital letters used in writing to denote the beginning of a sentence, proper nouns, or for emphasis.

Readers' Attention

The focus or interest of readers, which writers seek to capture and maintain through engaging content.

Hedging Sentences

Sentences constructed to make statements less assertive, using language that avoids firm commitment, often to mitigate risk or criticism.

Parallel Construction

A grammatical technique where sentences are structured similarly to create a sense of balance and rhythm.