The Z Company Has Prepared a Sales Budget for 40

question 39

Multiple Choice

The Z Company has prepared a sales budget for 40 000 units for a three-month period. The company desires a closing finished goods inventory of 12 000 units, and closing direct material inventory of 14 000 units at the end of the quarter. There is no beginning finished goods inventory, but beginning inventory of direct materials is 2000 units. It takes two units of direct material to make one unit of finished product. The number of units of direct material to be purchased during the quarter is

• A) 52 000.
• B) 104 000.
• C) 118 000.
• D) 116 000.

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Definitions:

Fiat Currencies

Money that a government has declared to be legal tender, but it is not backed by a physical commodity.

Cryptocurrencies

Electronic currencies employing cryptography to secure transactions and operating autonomously from any central banking institution.

Legal Tender

Currency that must be accepted if offered in payment of a debt, officially issued by a government or monetary authority.

Cryptocurrencies

Digital or virtual currencies that use cryptography for security and operate independently of a central bank, exemplified by Bitcoin and Ethereum.