General Ltd. manufactures boxes. The estimated number of boxes sold for the first three months of 2012 are: $$\begin{array} { l l }
\text { Month } & \text { Sales } \
\text { January } & 3,000 \
\text { February } & 4,200 \
\text { March } & 3,900
\end{array}$$ Finished goods inventory at the end of December was 900 units. Ending finished goods inventory is equal to 20 per cent of the next month's sales. General Ltd. expects to sell the boxes for £5 each. April 2012 sales is projected at 4,500 boxes. What is the expected sales amount for March?
A)£15,000
B)£21,000
C)£19,500
D)£4,500

Question

General Ltd. manufactures boxes. The estimated number of boxes sold for the first three months of 2012 are: $$\begin{array} { l l } 
\text { Month } & \text { Sales } \
\text { January } & 3,000 \
\text { February } & 4,200 \
\text { March } & 3,900
\end{array}$$ Finished goods inventory at the end of December was 900 units. Ending finished goods inventory is equal to 20 per cent of the next month's sales. General Ltd. expects to sell the boxes for £5 each. April 2012 sales is projected at 4,500 boxes. What is the expected sales amount for March?
A)£15,000
B)£21,000
C)£19,500
D)£4,500

Quizplus · Accepted Answer

The expected sales amount for March is calculated by multiplying the number of boxes sold in March (3,900) by the selling price per box (£5). Therefore, 3,900 boxes * £5/box = £19,500.

General Ltd Finished Goods Inventory at the End of December Was 900