16) SHOW WORK. Aloan Co. provides the following sales forecast for the next thre
ID: 2549263 • Letter: 1
Question
16) SHOW WORK. Aloan Co. provides the following sales forecast for the next three months:
January
February
March
Sales units
3,000
4,200
5,000
The company wants to end each month with ending finished goods inventory equal to 10% of the next month's sales. Finished goods inventory on December 31 is 300 units. The budgeted production units for February are:
A) 5,000 units.
B) 4,200 units.
C) 4,700 units.
D) 4,120 units.
E) 4,280 units.
17) SHOW WORK. Flack Corporation, a merchandiser, provides the following information for its December budgeting process:
The November 30 inventory was 1,800 units.
Budgeted sales for December are 4,000 units.
Desired December 31 inventory is 2,840 units.
Budgeted purchases are:
A) 5,040 units.
B) 1,240 units.
C) 6,840 units.
D) 4,000 units.
E) 5,800 units.
January
February
March
Sales units
3,000
4,200
5,000
Explanation / Answer
16 Sales for February 4200 Add: Desired ending finished goods inventory 500 =5000*10% 4700 Less: Beginning finished goods inventory 420 =4200*10% Budgeted production units for February 4280 Option E is correct 17 Budgeted purchases=4000+2840-1800= 5040 units Option A is correct
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