Cahuilla Corporation Predicts the Following Sales in Units for the Coming

question 92

Multiple Choice

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.

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Ethnic Identification

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