Answer the Following Questions Using the Information Below

question 51

Multiple Choice

Answer the following questions using the information below:
The following information pertains to the January operating budget for Casey Corporation.
• Budgeted sales for January $200,000 and February $100,000.
• Collections for sales are 60% in the month of sale and 40% the next month.
• Gross margin is 30% of sales.
• Administrative costs are $10,000 each month.
• Beginning accounts receivable is $20,000.
• Beginning inventory is $14,000.
• Beginning accounts payable is $65,000. (All from inventory purchases.)
• Purchases are paid in full the following month.
• Desired ending inventory is 20% of next month's cost of goods sold (COGS) .
-At the end of January,budgeted ending inventory is ________.

• A) $10,000
• B) $14,000
• C) $20,000
• D) $22,000

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Definitions:

Task Goals

Specific objectives or targets set for tasks or activities, focusing on the completion and achievement of individual assignments.

Properly Set

Correctly established or arranged according to specified guidelines or principles.

Expectancy Theory

A motivational theory that suggests an individual's behavior is determined by their expected outcomes or rewards, based on the belief that effort leads to performance and performance leads to rewards.

High Instrumentality

The belief that performance will lead directly to desirable outcomes, an essential concept in expectancy theory of motivation.