Use the Information Below to Answer the Following Question(s)

question 46

Multiple Choice

Use the information below to answer the following question(s) .
Layne Cedar manufactures cedar chests. The estimated number of chests for the first three months of 2012 is as follows:
Finished goods inventory at the end of December is 3,000 units. Ending finished goods are equal to 30 percent of next month's sales. April 2012 sales are expected to total 16,000 units.
-What should be the budgeted number of chests produced in January 2012?

• A) 8,800 chests
• B) 11,200 chests
• C) 13,000 chests
• D) 14,200 chests
• E) 14,700 chests