The following are budgeted data: Two pounds of material are required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Purchases of raw materials for May should be:
A)39,200 pounds
B)52,000 pounds
C)36,800 pounds
D)38,000 pounds

Question

The following are budgeted data:  Two pounds of material are required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Purchases of raw materials for May should be:
A)39,200 pounds 
B)52,000 pounds 
C)36,800 pounds 
D)38,000 pounds

Quizplus · Accepted Answer

The Answer of The following are budgeted data:  Two pounds of material are required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Purchases of raw materials for May should be:
A)39,200 pounds 
B)52,000 pounds 
C)36,800 pounds 
D)38,000 pounds

The Following Are Budgeted Data: Two Pounds of Material