The following are budgeted data: One pound of material is 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 February would be budgeted to be:
A)19,000 pounds
B)19,200 pounds
C)23,000 pounds
D)18,800 pounds

Question

The following are budgeted data:  One pound of material is 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 February would be budgeted to be:
A)19,000 pounds 
B)19,200 pounds 
C)23,000 pounds 
D)18,800 pounds

Quizplus · Accepted Answer

The Answer of The following are budgeted data:  One pound of material is 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 February would be budgeted to be:
A)19,000 pounds 
B)19,200 pounds 
C)23,000 pounds 
D)18,800 pounds

The Following Are Budgeted Data: One Pound of Material