Doanne Food Processing Expects to Have 36,000 Pounds of Raw

question 86

Multiple Choice

Doanne Food Processing expects to have 36,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company budgets the following production (in units) for April through July, inclusive:At the end of each month the firm desires its ending raw material inventory to be 10% of the next month's production needs. Each finished unit requires three pounds of raw materials.
Doanne's budgeted purchases (in pounds) of raw materials for June would be:

• A) 414,000.
• B) 420,000.
• C) 426,000.
• D) 456,000.
• E) 498,000.