Matz Company Expects to Sell 24,000 Units of Finished Goods

question 111

Multiple Choice

Matz Company expects to sell 24,000 units of finished goods over the next 6-month period. The company has 10,000 units on hand and its managers want to have 14,000 units on hand at the end of the period. To produce one unit of finished product, two units of direct materials are needed. Matz has 100,000 units of direct material on hand and has budgeted for an ending inventory of 110,000 units. What is the amount of direct material to be purchased (in units) ?

• A)38,000
• B)46,000
• C)66,000
• D)18,000

---

Definitions:

Sensation

The process of receiving information from the environment through sensory receptors and translating it into neural signals.

Orgasm

The climax of sexual excitement.

Chemical Contraception

Methods of preventing pregnancy that involve the use of drugs or chemical compounds, such as oral contraceptives.

Surgical Contraception

Methods of birth control that involve surgical procedures, typically permanent, such as tubal ligation for women or vasectomy for men.