Planning Systems, Inc

question 146

Multiple Choice

Planning Systems, Inc. has forecast the following unit sales and production for the next year, by quarter: 1^st 2^nd 3^rd 4^th
Production 150 160 140 100
Sales 120 140 150 120
The firm has beginning inventories as follows:
Finished goods 50 units
Direct material A 100
Direct material B 100
A finished unit requires one unit of material A and two units of material B. There should be enough material on hand at the end of each quarter to meet 20% of the next quarter's production needs. There are no work-in-process inventories.
What is the ending finished goods inventory for quarter 2?

• A)50
• B)70
• C)80
• D)100

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Definitions:

Classified Ads

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Market

A market is a place or mechanism where buyers and sellers interact to trade goods, services, or financial instruments.

Monopolists

Entities or individuals that have exclusive control over the supply of a particular good or service, giving them significant power over the market.

Demand Curves

Graphical representations showing the relationship between the price of an item and the quantity demanded by consumers.