Feedee Company Has Budgeted Sales and Production (In Units) Over

question 13

Multiple Choice

Feedee Company has budgeted sales and production (in units) over the next three months as follows: There are 10,000 units on hand on January 1. A minimum of 20 percent of the next month's sales in units must be on hand at the end of each month. April sales are expected to be 70,000. Budgeted sales for February would be

• A) 64,000
• B) 78,000
• C) 60,000
• D) 52,000

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Definitions:

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.

Foreign Corporation

A company that is incorporated under the laws of a country different from the country of its primary operations.

Inventory

The total amount of goods and materials held by a business for the purpose of sale or production, including raw materials, work-in-process, and finished goods.

Consolidated Income Tax Return

A single income tax return filed by a parent company that includes all incomes, deductions, and credits of all members of a corporate group.