Reference: 20_04
Kyoto, Inc $\begin{array}{llr}&\text { April}&\text { May}&\text { June}&\text { July }\\\text { Sales in units } &240&280&300&240\\\end{array}$

question 59

Multiple Choice

Reference: 20_04
Kyoto, Inc. predicts the following sales in units for the coming four months:
$\begin{array}{llr}&\text { April}&\text { May}&\text { June}&\text { July }\\\text { Sales in units } &240&280&300&240\\\end{array}$
Although each month's ending inventory of finished units should be 60% of the next month's sales, the March 31 finished goods inventory is only 100 units. A finished unit requires five pounds of raw material B. The March 31 raw materials inventory has 200 pounds of B. Each month's ending inventory of raw materials should be 30% of the following month's production needs.
-If each unit of Kyoto's product takes two hours to produce and the labor rate is expected to be $10 per hour,what is the budgeted labor cost for the second quarter?

• A) $16,400
• B) $17,280
• C) $9,840
• D) $8,960
• E) $17,560

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Definitions:

B2B Markets

Business-to-Business markets where transactions are conducted between companies rather than between companies and individual consumers.

Modified Rebuy

is a buying situation where an organization makes some changes to their regular purchase specifications or suppliers, requiring some review but not starting from scratch.

Current Vendors

Businesses or suppliers currently providing products or services to a company.

Straight Rebuy

A routine purchase of the same goods or services without modification, typically done by businesses in established relationships with suppliers.