Cahuilla Corporation Predicts the Following Sales in Units for the Coming

Multiple Choice

Cahuilla Corporation predicts the following sales in units for the coming four months: Sales in Units
$$\begin{array} { c c c c } \text { April } & \text { May } & \text { June } & \text { July } \\240 & 280 & 300 & 240\end{array}$$ 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) 400 units.
B) 280 units.
C) 288 units.
D) 168 units.
E) 232 units.