The TS Corporation Has Budgeted Sales for the Year as Follows

question 119

Multiple Choice

The TS Corporation has budgeted sales for the year as follows: The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 2,500 units. Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in material. Scheduled production for the third quarter should be:

• A)14,500 units
• B)18,500 units
• C)15,500 units
• D)13,500 units

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Definitions:

Foucha V. Louisiana

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