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

question 28

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 2016 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 2016 sales are expected to total 16,000 units.
-What should be the budgeted number of chests produced in January 2016?

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

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Definitions:

Substitute Check Procedure

A legal process that allows banks to use digital images of checks for clearing and settlement instead of the original paper checks.

Fraudulently Alters

The illegal modification or change of a document, item, or product with the intention to deceive for personal gain.

Embezzles

Illegal taking of funds or assets by a person to whom they were entrusted.

Bank's Warranties

Assurances provided by a bank concerning the validity and authenticity of a financial instrument or transaction.