Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 35

For the following questions, circle the best response.

Long Company’s budgeted sales are as follows:

The ending inventory of finished goods for each month must be equal to 40% of the next month’s budgeted unit sales. Finished goods inventory on January 1 was 600 units. Calculate the number of units scheduled for production in March. (Hint: Use the cost of goods sold model.)

a. 1,275.

b. 1,400.

c. 1,525.

d. 1,625.

Step 1 of 2

The beginning inventory of finished goods for March was

The ending inventory of finished goods for March was