Each Unit Produced by Terra Electronics Requires 4 Pounds of Raw

question 85

Multiple Choice

Each unit produced by Terra Electronics requires 4 pounds of raw materials.The raw materials inventory must be equal to 10% of the next month's production.Each pound of raw materials costs $2.00.Budgeted production information follows. $$\begin{array} { l l } \text { April } & 28,000 \text { units } \\\text { May } & 30,000 \text { units } \\\text { June } & 25,000 \text { units }\end{array}$$ How much are budgeted purchases of raw materials for May?

• A)$118,000
• B)$236,000
• C)$221,000
• D)None of the answer choices are correct.

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