Cahuilla Corporation Predicts the Following Sales in Units for the Coming

question 196

Multiple Choice

Cahuilla Corporation predicts the following sales in units for the coming four months:
Each month's ending Finished Goods Inventory in units 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 direct material B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be:

• A) 1,422 lbs.
• B) 288 lbs.
• C) 1,854 lbs.
• D) 276 lbs.
• E) 1,008 lbs.

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Definitions:

Power Factor

The ratio of real power flowing to the load to the apparent power in the circuit, indicating the efficiency of the power usage.

RLC Series Circuit

An electric circuit consisting of a resistor (R), inductor (L), and capacitor (C) connected in series, creating a circuit with resonant properties.

Circuit Power Factor

A measure of the efficiency of power usage in an electrical circuit, defined as the ratio of real power flowing to the load to the apparent power in the circuit.

Applied Voltage

The electrical potential difference deliberately applied across a component or circuit to drive current through it.