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Cahuilla Corporation Predicts the Following Sales in Units for the Coming

question 92

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Cahuilla Corporation predicts the following sales in units for the coming four months: Cahuilla Corporation predicts the following sales in units for the coming four months:   Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 finished goods inventory is 96 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 200 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted production for May is: A)  232 units. B)  168 units. C)  400 units. D)  280 units. E)  288 units. Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 finished goods inventory is 96 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 200 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted production for May is:


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