Zhang Industries Budgets Production of 300 Units in June and 310

question 74

Multiple Choice

Zhang Industries budgets production of 300 units in June and 310 units in July. Each finished unit requires 4 pounds of raw material K, which costs $5 per pound. Each month's ending inventory of raw materials should be 30% of the following month's budgeted production. The June 1 raw materials inventory has 360 pounds of raw material K. Compute budgeted cost of purchases for raw material K for June.

• A) $4,400.
• B) $6,000.
• C) $6,200.
• D) $6,060.
• E) $6,100.

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Definitions:

Probabilities of Launch

This term relates to the statistical likelihood of successfully initiating a new product, service, or mission.

Sales

Transactions between buyers and sellers in which the ownership of goods or services is transferred in exchange for money.

Costs

The amount of money that needs to be spent to buy, do, or make something.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.