Specials R Us Expects to Begin the Coming Year with 60

question 42

Multiple Choice

Specials R Us expects to begin the coming year with 60 units of Product F in finished goods inventory. It expects to sell 585 units of this product during the year and anticipates the ending finished goods inventory for the product will be 80 units. Each item of Product F requires 6kgs of Material AB. The company expects to have 800 kg of Material AB on hand at the beginning of the coming year and wishes to end the year with 1000 kg in inventory. How many kilograms of Material AB must the company purchase during the year?

• A) 3 190 kg
• B) 3 510 kg
• C) 1 480 kg
• D) 3 830 kg

---

Definitions:

Inception Date

The date on which an agreement, policy, or financial instrument becomes effective or is entered into.

Fair Value

A projected price for an asset or liability that could be transferred between agreeable, well-informed participants in a transaction that is free from any special relationship.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in evaluating investment opportunities.

Lease Receivable

An amount due to the lessor under a lease agreement, representing the lessor's right to receive payments from the lessee.