Cahuille Corporation predicts the following seles in units for the coming four m
ID: 2437646 • Letter: C
Question
Cahuille Corporation predicts the following seles in units for the coming four months April May June July 380 348 368 30 Sales in Units tach month's ending finished goods n ente should be 40% of the next month's snes March 31 finished goodsin entory is 120 units A finished unit r quires 5 pounds ofdirect m Inventory has 260 pounds of B Each month's ending Raw Matere Inventory should be 30% of the following month's production needs. The budgeted production for May is: en n cost of S2 Oper pound The Merrh31 aw Me er ls Mulsple Choice 200 units. 494 unlt 340 untE. 348 units. 204 unlts.Explanation / Answer
The answer has been prepared on the basis of the following table:
Months
April
May
June
July
Sales in units
300
340
360
300
Particulars
Units
April's finished inventory (340 x 40%)
136
May's finished inventory (360 x 40%)
144
Hence, the required production for May:
Sales of May
340
Add: May's finished inventory (360 x 40%)
144
484
Less: Opening inventory of May (April's ending inventory)
136
Production for May
348
Thus, correct answer would be 348 units, i.e. option C.
Months
April
May
June
July
Sales in units
300
340
360
300