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Waunakee Metals expects sales for the year to be 100,000 units, with quarterly sales of 20%, 25%, 30%, and 25%, respectively. The sales price is expected to be $40.
Management desires an ending finished goods inventory each quarter of 20% of the next quarter's sales volume.
Each unit requires 3 kilograms of materials at a cost of $5 per kilogram. Management desires an ending raw materials inventory each quarter of 10% of the next quarter's production needs.
Question 1: What is the materials to be purchased (in kilograms)?
Option 1: 26,000
Option 2: 86,700
Option 3: 78,900
Option 4: 78,000
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