Reference no: EM132598865

Emerald Company budgeted the following production in units for the second quarter of the year:

April                   45,000

May                   38,000

June                    42,000

Each unit requires four pounds of raw material. Saphire's policy is to have 30% of the following month's production needs for materials in inventory. This policy was met in March.

Question 1: Raw materials purchases budgeted for May in pounds equal:

Option 1: 45,600

Option 2: 156,800

Option 3: 171,600

Option 4: 202,400

Option 5: 225,600

Question 2: Bright Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months of the current year are as follows:

Month                  Sales

October            20,000

November              28,000

December                26,000

Finished goods inventory at the end of September was 6,000 units. Ending finished goods inventory is budgeted to equal 25% of the next month's sales. Bright Lamp expects to sell the lamps for $25 each. In January of the next year, sales are projected at 32,000 lamps. How many lamps should be produced in November?

Option 1: 21,000 lamps

Option 2: 22,000 lamps

Option 3: 27,500 lamps

Option 4: 28,000 lamps

Option 5: 32,000 lamps