A firm that manufactures vases has budgeted production for the next four months as follows: Each vase requires 30 grams of silica. The managers desire an ending inventory sufficient to meet 25% of the next month's production. There is no beginning inventory of raw material in October. Budgeted purchases of silica in grams for November would be
A) 450,000
B) 1,650,000
C) 1,350,000
D) 900,000

Question

A firm that manufactures vases has budgeted production for the next four months as follows:  Each vase requires 30 grams of silica. The managers desire an ending inventory sufficient to meet 25% of the next month's production. There is no beginning inventory of raw material in October. Budgeted purchases of silica in grams for November would be
A) 450,000 
B) 1,650,000 
C) 1,350,000 
D) 900,000

Quizplus · Accepted Answer

The Answer of A firm that manufactures vases has budgeted production for the next four months as follows:  Each vase requires 30 grams of silica. The managers desire an ending inventory sufficient to meet 25% of the next month's production. There is no beginning inventory of raw material in October. Budgeted purchases of silica in grams for November would be
A) 450,000 
B) 1,650,000 
C) 1,350,000 
D) 900,000

A Firm That Manufactures Vases Has Budgeted Production for the Next