Charm Enterprises' production budget shows the following units to be produced for the coming three months: A finished unit requires four ounces of a key direct material. The March 31 Raw Materials Inventory has 4,032 ounces (oz.) of the material. Each month's ending Raw Materials Inventory should be 35% of the following month's production needs. The materials to be purchased during May should be:
A) 11,352 oz.
B) 11,520 oz.
C) 7,448 oz.
D) 15,384 oz.
E) 7,616 oz.

Question

Charm Enterprises' production budget shows the following units to be produced for the coming three months:  A finished unit requires four ounces of a key direct material. The March 31 Raw Materials Inventory has 4,032 ounces (oz.) of the material. Each month's ending Raw Materials Inventory should be 35% of the following month's production needs. The materials to be purchased during May should be:
A) 11,352 oz. 
B) 11,520 oz. 
C) 7,448 oz. 
D) 15,384 oz. 
E) 7,616 oz.

Quizplus · Accepted Answer

The Answer of Charm Enterprises' production budget shows the following units to be produced for the coming three months:  A finished unit requires four ounces of a key direct material. The March 31 Raw Materials Inventory has 4,032 ounces (oz.) of the material. Each month's ending Raw Materials Inventory should be 35% of the following month's production needs. The materials to be purchased during May should be:
A) 11,352 oz. 
B) 11,520 oz. 
C) 7,448 oz. 
D) 15,384 oz. 
E) 7,616 oz.

Charm Enterprises' Production Budget Shows the Following Units to Be