Planning Systems Has Forecast the Following Unit Sales and Production

question 12

Multiple Choice

Planning Systems has forecast the following unit sales and production for the next year, by quarter: A finished unit requires one unit of material A and two units of material B. There should be enough material on hand at the end of each quarter to meet 20% of the next quarter's production needs. There are no work-in-process inventories. What is ending finished goods inventory for quarter 2?

• A) 50
• B) 70
• C) 80
• D) 100

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Definitions:

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An unintentional error in speech or action that is believed to reveal a subconscious thought or feeling, as per the theories of Sigmund Freud.

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