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:

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount that remains.

Borrowed

The act of receiving something with the intention to return it, often referring to money in financial contexts.

Matured

Used to describe financial instruments or investments that have reached their due date for payment or realization.

Investment

Allocation of resources, usually money, with the expectation of generating an income or profit.