Projected Sales for Kenworth Inc

question 81

Multiple Choice

Projected sales for Kenworth Inc. for next year and beginning and ending inventory data are as follows:
Each unit requires 5 pounds of material which costs $3.00 per pound. The beginning inventory of raw materials is 5,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of the year. Each unit produced requires 2 hours of direct labour time, which is billed at $8 per hour.
-Pounds of material to be purchased would be

• A) 142,000.
• B) 148,000.
• C) 150,000.
• D) 152,000.

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Definitions:

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A global financial services firm that declared bankruptcy in 2008, an event that significantly contributed to the global financial crisis.