Cahuilla Corporation predicts the following sales in units for the coming four months:
Each month's ending Finished Goods Inventory should be 40% of the next month's sales.March 31 finished goods inventory is 96 units.A finished unit requires five pounds of direct material B at a cost of $2.00 per pound.The March 31 Raw Materials Inventory has 200 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:
A)232 units.
B)168 units.
C)400 units.
D)280 units.
E)288 units.

Question

Cahuilla Corporation predicts the following sales in units for the coming four months: 
Each month's ending Finished Goods Inventory should be 40% of the next month's sales.March 31 finished goods inventory is 96 units.A finished unit requires five pounds of direct material B at a cost of $2.00 per pound.The March 31 Raw Materials Inventory has 200 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:
A)232 units. 
B)168 units. 
C)400 units. 
D)280 units. 
E)288 units.

Quizplus · Accepted Answer

The correct answer is based on specific information or calculations provided in a previous context, which is not available here. However, typically, budgeted production is determined by considering factors such as expected sales, inventory levels, and production capacity. Without the specific details, it's not possible to explain why E (288 units) is the correct answer.

Cahuilla Corporation Predicts the Following Sales in Units for the Coming