Prestwich Company Has Budgeted Production for Next Year as Follows

question 51

Multiple Choice

Prestwich Company has budgeted production for next year as follows $\begin{array}{lrr} \text {Quarter } &\text { First}&\text { Second}&\text { Third}&\text { Fourh }\\\\ \text { Production in units } &60,000&80,000&90,000&70,000\\\end{array}$


Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for materialA. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:

• A)82,500 pounds.
• B)165,000 pounds.
• C)200,000 pounds.
• D)205,000 pounds.

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Definitions:

Arterial Blood Gases

A test that measures the levels of oxygen, carbon dioxide, and blood pH to assess lung function and how well the lungs are able to move oxygen into the blood and remove carbon dioxide.

Compensation

Remuneration or payment received by employees for their labor or services, often including wages, salaries, benefits, and bonuses.

Active Transport

The movement of substances across cell membranes against their concentration gradient, requiring energy expenditure by the cell.

Extracellular

Refers to anything located or occurring outside the cells, typically involving the extracellular matrix or fluids in the body.