Betcher corporation makes one product. Budgeting Unit Sales for the next four months are listed below. At
Question:
Betcher corporation makes one product. Budgeting Unit Sales for the next four months are listed below. At April 1 the company had no inventories of raw materials or finished goods.
Budgeted unit Sales.
April: 8,400
May: 8,700
June: 12,600
July: 13,100
Each unit of finished goods requires four pounds of raw materials. The ending finished goods inventory should equal 10% of the following month's sales. The ending raw materials inventory should equal 40% of the following month's raw materials production needs. If 50,600 pounds of raw materials are required for production in June, then the budgeted raw material purchases for May is closest to.
A) 56,600
B) 42, 056
C) 71,144
D) 36,360
OM operations management
ISBN: 978-1285451374
5th edition
Authors: David Alan Collier, James R. Evans