Roaming Vehicles Company Manufactures Buggies

question 107

Multiple Choice

Roaming Vehicles Company manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1 unit of steel. Scheduled production of buggies for the next two months is 500 and 600 units, respectively. Beginning inventory is 4,000 units of wood and 30 units of steel. The ending inventory of wood is planned to decrease 500 units in each of the next two months, and the steel inventory is expected to increase 5 units in each of the next two months.
How many units of wood are expected to be used in production during the second month?

• A)12,500 units
• B)10,000 units
• C)15,000 units
• D)12,000 units

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