Inventory of materials, One pound of material is required

Inventory of materials

Reference no: EM13139364

One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. At the beginning of Month 1, 3,200 lb. of materials were on hand. Purchases of raw materials for Month 2 would be budgeted to be:

a) 17,600 pounds

b) 23,400 pounds

c) 20,600 pounds

d) 25,000 pounds

Reference no: EM13139364

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