Mounds Company has provided you with the following sales data.
The company requires that 5% of the next month's sales be on hand at the end of each month.Budgeted production for October would be
A)30,000.
B) 31,000
C) 31,500
D) 35,000

Question

Mounds Company has provided you with the following sales data.
  The company requires that 5% of the next month's sales be on hand at the end of each month.Budgeted production for October would be 
A)30,000. 
B) 31,000 
C) 31,500 
D) 35,000

Quizplus · Accepted Answer

30,000 + [50,000 x 5% - 30,000 x 5%] = 31,000

Mounds Company Has Provided You with the Following Sales Data