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What is the materials to be purchased

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Question - 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.

Required - What is the materials to be purchased (in kilograms)?

a. 86,700

b. 84,300

c. 87,000

d. 29,000

Reference no: EM132763025

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