The Following Budgeted Information Is Provided: One Pound of Material

question 25

Multiple Choice

The following budgeted information is provided: One pound of material is required for each finished unit.The inventory of materials at the end of each month should equal 20% of the following month's production needs.At the beginning of Month 1,there was 3,200 lbs.of materials on hand.Purchases of raw materials for Month 1 would be (in pounds)

• A)25,000.
• B)23,400.
• C)17,200.
• D)22,000.