Bug Company manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1 unit of steel. Scheduled production of buggies for the next two months is 500 and 600 units, respectively. Beginning inventory is 4,000 units of wood and 30 units of steel. The ending inventory of wood is planned to decrease 500 units in each of the next two months, and the steel inventory is expected to increase 5 units in each of the next two months.
-Refer to the figure.How many units of steel are expected in the material inventory at the end of the second month?
A)30
B)35
C)40
D)45

Question

Quizplus · Accepted Answer

At the end of the first month, the material inventory is 20 units. In the second month, 10 units are received and 15 units are used, leaving 15 units at the end of the second month (20 + 10 - 15 = 15).

Bug Company Manufactures Buggies