Foremost Corporation manufactures boxes. The estimated number of boxes sold for the first three months of 2014 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 2014 sales is projected at 4,500 boxes.
How many boxes should be produced in January?
A) 3,060 boxes
B) 2,940 boxes
C) 3,000 boxes
D) 3,840 boxes

Question

Foremost Corporation manufactures boxes. The estimated number of boxes sold for the first three months of 2014 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 2014 sales is projected at 4,500 boxes.
How many boxes should be produced in January?
A) 3,060 boxes 
B) 2,940 boxes 
C) 3,000 boxes 
D) 3,840 boxes

Quizplus · Accepted Answer

The Answer of Foremost Corporation manufactures boxes. The estimated number of boxes sold for the first three months of 2014 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 2014 sales is projected at 4,500 boxes.
How many boxes should be produced in January?
A) 3,060 boxes 
B) 2,940 boxes 
C) 3,000 boxes 
D) 3,840 boxes

Foremost Corporation Manufactures Boxes