Alliance Company's budgets production of 24,000 units in January and 28,000 units in the February. Each finished unit requires 4 pounds of raw material K that costs $2.50 per pound. Each month's ending raw materials inventory should equal 40% of the following month's budgeted materials. The January 1 inventory for this material is 38,400 pounds.
- What is the budgeted materials need in pounds for January?
A) 96,000 pounds.
B) 140,800 pounds.
C) 57,600 pounds.
D) 83,200 pounds.
E) 102,400 pounds.
Correct Answer:
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