Answer the Following Question(s)using the Information Below

question 163

Multiple Choice

Answer the following question(s) using the information below.Furniture Inc.estimates the following number of mattress sales for the first four months of 2019:
Finished goods inventory at the end of December 2018 is 1,500 units.Target ending finished goods inventory is 30% of the next month's sales.
-In going from the sales budget to the production budget, adjustments need to be made for

• A)finished goods inventories.
• B)overhead charges.
• C)direct materials inventories.
• D)sales returns and allowances.
• E)changing from revenue to costs.