Cahuilla Corporation predicts the following sales in units for the coming four months: May July 470 430 April 430 Multiple Choice June 490 Sales in units Each month's ending finished goods inventory should be 40% of the next month's sales. March 31 finished goods inventory is 172 units. A finished unit requires five pounds of direct material B at a cost of $3.00 per pound. The March 31 Raw. Materials Inventory has 280 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:

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Cahuilla Corporation predicts the following sales in units for the coming four months:
July
430
Sales in units
Multiple Choice
O
Each month's ending finished goods inventory should be 40% of the next month's sales. March 31 finished goods inventory
is 172 units. A finished unit requires five pounds of direct material B at a cost of $3.00 per pound. The March 31 Raw
Materials Inventory has 280 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:
O
470 units.
478 units.
406 units.
666 units.
April
430
282 units.
May
470
June
490
Transcribed Image Text:Cahuilla Corporation predicts the following sales in units for the coming four months: July 430 Sales in units Multiple Choice O Each month's ending finished goods inventory should be 40% of the next month's sales. March 31 finished goods inventory is 172 units. A finished unit requires five pounds of direct material B at a cost of $3.00 per pound. The March 31 Raw Materials Inventory has 280 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: O 470 units. 478 units. 406 units. 666 units. April 430 282 units. May 470 June 490
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