The following budgeted information is provided: 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.At the beginning of Month 1,there was 3,200 lbs.of materials on hand.Purchases of raw materials for Month 1 would be (in pounds)

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To calculate the purchases for Month 1, we need to determine the production needs for Month 1 and Month 2. If Month 1 production needs are 16,000 lbs, then Month 2 needs are 20,000 lbs. The ending inventory for Month 1 should be 20% of Month 2's needs, which is 4,000 lbs. Starting with 3,200 lbs, we need 16,000 lbs for production and 4,000 lbs for ending inventory, totaling 20,000 lbs. Thus, purchases are 20,000 - 3,200 = 16,800 lbs.

The Following Budgeted Information Is Provided: One Pound of Material