Zhang Industries Budgets Production of 300 Units in June and 310

question 187

Multiple Choice

Zhang Industries budgets production of 300 units in June and 310 units in July. Each finished unit requires 4 pounds (lbs.) 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 purchases for raw material K in pounds for June.

• A) 880 lbs.
• B) 1,212 lbs.
• C) 1,200 lbs.
• D) 1,220 lbs.
• E) 1,240 lbs.

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