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. Materials purchases in 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. Materials purchases in 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

Required materials to be purchased:
 11eaadfd_cd06_88d9_95d8_a51527c69565_TB6948_00

Charm Enterprises' Production Budget Shows the Following Units to Be