What Is the Ending Inventory Level for April in the Production

question 24

Multiple Choice

What is the ending inventory level for April in the production plan shown in the table? All entries in the table are in terms of sales units. $$\begin{array} { | l | c | c | c | c | } \hline { \text { Month } } & \text { Forecast } & \begin{array} { c } \text { Regular } \\\text { Production }\end{array} & \begin{array} { c } \text { Overtime } \\\text { Production }\end{array} & \begin{array} { c } \text { Ending } \\\text { Inventory }\end{array} \\\hline \text { Tanuary } & 250 & 250 & 0 & 0 \\\hline \text { February } & 200 & 300 & 0 & \\\hline \text { March } & 300 & 325 & 25 & \\\hline \text { April } & 500 & 400 & 25 & \\\hline\end{array}$$

• A)150 units
• B)125 units
• C)100 units
• D)75 units

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Definitions:

Long-term Bank Loan

A loan provided by a banking institution with a repayment period extending beyond one year, typically used for financing significant business investments or acquisitions.

Use of Cash

Use of Cash refers to how a business or individual utilizes their available cash resources, including operating expenses, investments, and financing activities.

Inventory

The total value of a company's goods that are ready for sale, in the process of being produced, or used as raw materials.

Use of Cash

Refers to how a business or individual utilizes available cash resources, including operations, investments, and financing activities.