Balmforth Products, Inc

question 78

Multiple Choice

Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows: The company wants to maintain monthly ending inventories of Material A equal to 20% of the following month's production needs. On January 31, this target had not been attained since only 2,000 yards of Material A were on hand. The cost of Material A is $0.80 per yard. The company wants to prepare a Direct Materials Purchases Budget.
-The total needs (i.e. ,production requirements plus desired ending inventory) of Material A for the month of May are:

• A)37,800 yards
• B)45,360 yards
• C)46,500 yards
• D)38,940 yards

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Definitions:

Eye Contact

The act of looking directly into another person’s eyes, which can be a powerful form of nonverbal communication, signifying attention, interest, or intimacy.

Interpersonal Interactions

Refers to the exchanges and communications between individuals in a social or professional setting.

Emblems

Nonverbal gestures that have specific, widely understood meanings within a particular culture, acting as a form of communication.

Illustrators

Nonverbal behaviors or gestures that accompany speech and help convey meaning or emphasize points.