The Following Are Budgeted Data: One Pound of Material

question 46

Multiple Choice

The following are budgeted data: 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. Purchases of raw materials for February would be budgeted to be:

• A) 19,600 pounds
• B) 20,400 pounds
• C) 18,400 pounds
• D) 18,600 pounds

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Definitions:

United States

A country located in North America, comprised of 50 states, known for its significant economic, cultural, and political influence globally.

Switzerland

A landlocked country in Central Europe known for its high standard of living, neutrality, and picturesque landscapes.

Import

These are goods or services brought into one country from another for sale or use.

Quota

A government-imposed trade restriction limiting the number or value of goods that can be imported or exported during a specific time.