The Following Forecasted Sales Pertain to Shankar Company: Finished

question 24

Multiple Choice

The following forecasted sales pertain to Shankar Company: Finished goods inventory as of April 30 4,000 units
The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 30 percent of the next month's sales.
What is the budgeted beginning balance in units for finished goods inventory on July 1?

• A) 4,000 units
• B) 3,500 units
• C) 5,500 units
• D) 4,500 units

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Definitions:

U.S. Department Of Labor

A federal agency responsible for ensuring safe work conditions, minimum wage enforcement, unemployment insurance benefits, and other work-related supports and regulations.

GDP Deflator

An economic measure of inflation that adjusts the gross domestic product (GDP) for changes in price levels, reflecting the real economic output.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.