Porl Corporation Makes and Sells a Single Product Called a Yute

question 3

Multiple Choice

Porl Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available: All of these expenses (except depreciation) are paid in cash in the month they are incurred.
-If the total budgeted selling and administrative expense for October is $409,000,then how many Yutes does the company plan to sell in October?

• A)19,700 units
• B)20,000 units
• C)20,500 units
• D)20,200 units

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Definitions:

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Consolidated Income Tax Return

A single income tax return filed by a parent company and its subsidiaries, considered as one entity for tax purposes.

Intra-entity Transfers

Transfers of goods, services, or assets between divisions or units within the same company.

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.