Reference: 07-06
Pardise Company Plans the Following Beginning and Ending

question 69

Multiple Choice

Reference: 07-06
Pardise Company plans the following beginning and ending inventory levels (in units) for July: $$\begin{array} { | l | l | l | } \hline & \text { July 1 } & \text { July } 30 \\\hline \text { Raw material } & 40,000 & 50,000 \\\hline \text { Work in process } & 10,000 & 10,000 \\\hline \text { Finished goods } & 80,000 & 50,000 \\\hline\end{array}$$ Two units of raw material are needed to produce each unit of finished product.
-If 500,000 finished units were to be manufactured during July, the units of raw material needed to be purchased would be:

• A)1,000,000.
• B)990,000.
• C)1,010,000.
• D)1,020,000.

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Definitions:

Agricultural Output

The total quantity of agricultural products, such as crops and livestock, produced in a given period.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period.

Perfectly Price-inelastic

A situation where the quantity demanded of a good does not change regardless of changes in its price.

Price-inelastic

Referring to a situation where demand or supply for a good or service is relatively unresponsive to changes in price.