Cahuilla Corporation Predicts the Following Sales in Units for the Coming

question 141

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 cost of direct material B during May should be:

• A) $576.
• B) $3,708.
• C) $552.
• D) $2,016.
• E) $2,844.

---

Definitions:

Physiological Response

Bodily reactions, such as changes in heart rate, breathing, and hormone levels, to stimuli or activities.

Behavioral Response

The observable reaction or action of an individual following an environmental or internal stimulus.

Leptin

A hormone produced by adipose cells that helps to regulate energy balance by inhibiting hunger, which in turn diminishes fat storage in adipocytes.

Genetics

The branch of biology that studies the inheritance of physical and behavioral characteristics of an organism as determined by the genes.