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Although each month\'s ending inventory of finished units should be 64% of the n

ID: 2374808 • Letter: A

Question

Although each month's ending inventory of finished units should be 64% of the next month's sales, the March 31 finished goods inventory is only 130 units. A finished unit requires five pounds of raw material B. The March 31 raw materials inventory has 210 pounds of B. Each month's ending inventory of raw materials should be 35% of the following month's production needs. The budgeted purchases of pounds of raw material B during May should be: (closest to)

April May June July   Sales in units 300 340 360 300

Explanation / Answer


1,709 lb.
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