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

question 117

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.
-How many chests should be budgeted to be produced in the first quarter of 2016?

• A)37,000 chests
• B)44,800 chests
• C)41,800 chests
• D)38,800 chests
• E)48,400 chests

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Definitions:

Investment Inventory

A list or record of all investments held by an individual or company, including stocks, bonds, and other assets.