Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in units 240 280 300 240 Each month's ending Finished Goods Inventory 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 B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted production for May is: Select one: a. 288 units. b. 400 units. c. 232 units. d. 280 units. e. 168 units. Clear my choice
Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in units 240 280 300 240 Each month's ending Finished Goods Inventory 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 B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted production for May is: Select one: a. 288 units. b. 400 units. c. 232 units. d. 280 units. e. 168 units. Clear my choice
Chapter7: Budgeting
Section: Chapter Questions
Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...
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![Cahuilla Corporation predicts the following sales in units for the coming four months: April May
June July Sales in units 240 280 300 240 Each month's ending Finished Goods Inventory 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 B. Each month's ending Raw Materials Inventory should
be 30% of the following month's production needs. The budgeted production for May is: Select
one: a. 288 units. b. 400 units. c. 232 units. d. 280 units. e. 168 units. Clear my choice](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49784750-c501-474b-92f8-d1718862e635%2Fca005048-6843-4f49-adff-6c0838dba049%2F2hjyheb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cahuilla Corporation predicts the following sales in units for the coming four months: April May
June July Sales in units 240 280 300 240 Each month's ending Finished Goods Inventory 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 B. Each month's ending Raw Materials Inventory should
be 30% of the following month's production needs. The budgeted production for May is: Select
one: a. 288 units. b. 400 units. c. 232 units. d. 280 units. e. 168 units. Clear my choice
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