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Big Company Manufactures Keyboards Compute the Budgeted Quantity of Plastic That Needs to Be

Question 103

Multiple Choice

Big Company manufactures keyboards.Management wishes to develop budgets for the upcoming quarter based on the following data:
 Sales in units 800 units  Selling price per unit $60 Inventory at beginning of the quarter (FG) 80 units  Desired ending inventory (FG) 130 units  Direct materials per unit: 4 ounces plastic  Plastic inventory at beginning of quarter 136 ounces  Desired ending inventory of plastic 84 ounces  Plastic cost $.18 per ounce \begin{array}{ll}\text { Sales in units } & 800 \text { units } \\\text { Selling price per unit } & \$ 60 \\\text { Inventory at beginning of the quarter }(F G) & 80 \text { units } \\\text { Desired ending inventory }(F G) & 130 \text { units } \\\text { Direct materials per unit: } & 4 \text { ounces plastic } \\\text { Plastic inventory at beginning of quarter } & 136 \text { ounces } \\\text { Desired ending inventory of plastic } & 84 \text { ounces } \\\text { Plastic cost } & \$ .18 \text { per ounce }\end{array}

Compute the budgeted quantity of plastic that needs to be purchased for the next quarter.


A) 850 ounces
B) 3,348 ounces
C) 3,452 ounces
D) 798 ounces
E) 902 ounces

Correct Answer:

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