The Following Budgeted Information Is Provided: One Pound of Material

question 51

Multiple Choice

The following budgeted information is provided: One pound of material is required for each finished unit.The inventory of materials at the end of each month should equal 20% of the following month's production needs.At the beginning of Month 1,there was 3,200 lbs.of materials on hand.Purchases of raw materials for Month 1 would be (in pounds) :

• A)25,000.
• B)23,400.
• C)17,200.
• D)22,000.

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Definitions:

Ceiling Fan

An electrically powered fan mounted to the ceiling of a room, which rotates blades to circulate air and provide cooling.

Fixture

An item that was originally a piece of personal property but becomes part of realty after it is permanently attached to the real property in question.

Subsurface Rights

Legal rights to use and develop the area below the earth's surface, such as minerals, oil, and gas.

Underground Materials

Substances found beneath the earth's surface which can include minerals, oil, gas, or groundwater.