Question 3 Charm Enterprises\' production budget shows the following units to be

Question

Question 3 Charm Enterprises' production budget shows the following units to be produced for the coming three months: Tin Atte 1 H April May June Units to be produced 2,560 2.880 2,765 A finished unit requires four ounces of a key direct material. The March 31 Raw Materials inventory has 2.560 ounces (oz.) of the material. Each month's ending Raw Materials inventory should be 35% of the following month's production needs. The materials to be purchased during May should be: O 15,384 oz. O 7,616 oz. O 11,520 oz. lock is shating your screen with app honorlock.com. Stop charina

Explanation / Answer

Q3) Material to be purchased = Material used in production +desired ending inventory-beginning inventory

= (2880*4)+(2760*4*35%)-(2880*4*35%)

Material to be purchased = 11352

Q4) Unit purchase = 22000+3000-2500 = 22500 units

so answer is b) 22500 units

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