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Question 1: Boulware Company's budgeted production calls for 5,500 units in October and 8,500 units in November. Each unit requires 8 pounds (lbs.) of raw material A. Each month's ending inventory of raw materials should equal 30% of the following month's budgeted materials requirements. The October 1 inventory for this material is 13,200 pounds. What is the budgeted materials purchases in pounds for October?
Multiple Choice
Option 1: 44,000 lbs.
Option 2: 51,200 lbs.
Option 3: 64,400 lbs.
Option 4: 77,600 lbs.
Option 5: 40,150 lbs.
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