Planning Systems, Inc A Finished Unit Requires One Unit of Material a and Production

question 34

Multiple Choice

Planning Systems, Inc. has forecast the following unit sales and production for the next year, by quarter: $$\begin{array}{l}\begin{array} { l l l l l } & 1 ^ { \text {st } } & 2 ^ { \text {nd } } & 3 ^ { \text {rd } } & 4 ^ { \text {th } } \\\text { Production } & 150 & 160 & 140 & 100 \\\text { Sales } & 120 & 140 & 150 & 120\end{array}\\\text { The firm has beginning inventories as follows: }\\\begin{array} { l l } \text { Finished goods } & 50 \text { units } \\\text { Direct material A } & 100 \\\text { Direct material B } & 100\end{array}\end{array}$$ A finished unit requires one unit of material A and two units of material B. There should be enough material on hand at the end of each quarter to meet 20% of the next quarter's production needs. There are no work-in-process inventories.
How much material B must be purchased in quarter 1?

• A) 264
• B) 196
• C) 204
• D) 256

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Definitions:

Protons

Subatomic particles found in the nucleus of an atom, with a positive electric charge.

Neutrons

Subatomic particles present in the nucleus of an atom, having no electric charge.

Hydrogen Bond

A feeble connection formed between two molecules through the electrostatic force that attracts a proton in one molecule to an electronegative atom in the other.

Covalently Bonded

Refers to atoms connected by the sharing of pairs of electrons, creating a stable arrangement of atomic components.