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:

Foreign Currencies

Different countries' monetary units, which are exchanged in the foreign exchange market.

British Pound

The currency of the United Kingdom, used in Great Britain and Northern Ireland.

Uncovered Interest Parity

An economic theory that states the difference in interest rates between two countries equals the expected change in exchange rates between those countries' currencies.

Exchange Rate

The price of one country's currency expressed in another country's currency.