Graham Corporation's Budgeted Production Schedule, by Quarters, for the Coming

question 120

Multiple Choice

Graham Corporation's budgeted production schedule, by quarters, for the coming year is as follows:
Quarter 1 = 22,500 units
Quarter 2 = 19,000 units
Quarter 3 = 17,000 units
Quarter 4 = 24,000 units
Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with 30% of that quarter's direct materials production requirements.
Graham expects to have 50,000 pounds of direct materials on hand at the beginning of Quarter 1.
What would be Graham's budgeted direct materials purchases (in pounds) for the first quarter?

• A) 17,500 pounds.
• B) 34,600 pounds.
• C) 37,750 pounds.
• D) 67,100 pounds.
• E) 84,600 pounds.

---

Definitions:

Resolution to Pay

A formal decision made by a company's board of directors to distribute funds, often as dividends, to shareholders.

Dividend Payment

A payout of part of a firm's profits, determined by its board of directors, and given to its stockholders.

Ex-Dividend Date

Date two business days before the date of record, establishing those individuals entitled to a dividend.

Market Value

The current quoted price at which an asset or a company can be bought or sold on the open market.