General Corporation manufactures boxes.The estimated number of boxes sold for the first three months of 2011 are as follows: Finished goods inventory at the end of December was 900 units.Ending finished goods inventory is equal to 20 percent of the next month's sales.General Corporation expects to sell the boxes for $5 each.April 2011 sales is projected at 4,500 boxes.
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How many boxes should be produced in February?
A) 4,140 boxes
B) 4,200 boxes
C) 4,260 boxes
D) 3,900 boxes

Question

General Corporation manufactures boxes.The estimated number of boxes sold for the first three months of 2011 are as follows:  Finished goods inventory at the end of December was 900 units.Ending finished goods inventory is equal to 20 percent of the next month's sales.General Corporation expects to sell the boxes for $5 each.April 2011 sales is projected at 4,500 boxes.
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How many boxes should be produced in February?
A) 4,140 boxes 
B) 4,200 boxes 
C) 4,260 boxes 
D) 3,900 boxes

Quizplus · Accepted Answer

February has 28 days, which is 4 weeks. So, the number of boxes that should be produced in February is 4 * 1,035 = 4,140 boxes.

General Corporation Manufactures Boxes