Bengal Co Provides the Following Sales Forecast for the Next Three

question 29

Multiple Choice

Bengal Co. provides the following sales forecast for the next three months: Sales units
$$\begin{array} { l r r } \text { July } & \text { August } & \text { September } \\5,000 & 5,700 & 5,560\end{array}$$ The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,250 units.
-The budgeted production units for August are:

• A) 4,135 units.
• B) 6,950 units.
• C) 5,665 units.
• D) 4,310 units.
• E) 7,090 units.

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Definitions:

Subsidiary Dissolved

The process of legally dissolving a subsidiary company, which involves winding up its operations and financial affairs.

Acquisition

The process of obtaining control of another company or business asset through purchase, merger, or another method.

Recording

The process of documenting financial transactions in the accounting records of a business.

Consolidation Entry A

An accounting entry made to adjust or combine financial information from separate entities during consolidation.