Reference no: EM133144198
Question - Betz Company's sales budget shows the following projections for the year ending December 31, 2020:
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Quarter
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Units
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First
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60,000
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Second
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80,000
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Third
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45,000
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Fourth
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55,000
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Total
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240,000
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Inventory on December 31, 2019, was budgeted at 18,000 units. Finished goods inventory at the end of each period is expected to equal 30% of the next period's budgeted unit sales. How many units should be produced during the first quarter of 2020?
a. 24,000
b. 48,000
c. 66,000
d. 72,000
Phillip Inc. expects to sell 18,400 school bags in October. Each bag requires 3 square feet of fabric. October beginning inventories are estimated at 8,000 bags and 32,000 square feet of fabric. Phillip wants to end October with 9,200 bags and 36,000 square feet of fabric. How many square feet of fabric should Phillip Inc. plan to purchase in October?
a. 51,200
b. 58,800
c. 59,200
d. 62,800
Jones Company has budgeted 160,000 units of Product M to be made in July. Product M requires 3 pounds of raw material per unit. Projected balances for raw material for July are:
July 1 1,500 pounds
How many pounds of raw material should be purchased in July?
a. 159,300
b. 160,700
c. 479,300
d. 480,700
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