General Ltd

question 118

Multiple Choice

General Ltd. manufactures boxes. The estimated number of boxes sold for the first three months of 2001 are: Finished goods inventory at the end of December was 900 units. Ending finished goods inventory is equal to 20 percent of the next month's sales. General Ltd. expects to sell the boxes for £5 each. April 2004 sales is projected at 4,500 boxes.
What is the expected sales amount for March?

• A) £15,000
• B) £21,000
• C) £19,500
• D) £4,500

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Definitions:

Colorado Rockies

A major mountain range in the western United States extending from the northernmost part of New Mexico to British Columbia in Canada.

Materials Standards

Benchmarks or specifications set for the quality, quantity, and cost of materials used in production to achieve performance and efficiency goals.

Direct Materials Purchases Variance

This term refers to the difference between the actual cost of materials purchased and the expected (standard) cost of materials needed to manufacture the products during a specific period.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost.