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East Corp Manufactures a Product That Uses 3 Pounds of Raw

Question 11

Multiple Choice

East Corp. manufactures a product that uses 3 pounds of raw material. East's raw material inventory at December 31, 2009 is 50,000 pounds; its desired raw material inventory at December 31, 2010 is 25% of beginning inventory. East's estimated 2010 production is 700,000 units of finished product. How many pounds of raw material should East buy during 2010?


A) 662,500
B) 737,500
C) 2,062,500
D) 2,212,500
E) 2,237,500

Correct Answer:

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