Presented is selected second quarter budget data for the Arnold Company

Additional information:
• Each unit of finished product requires three pounds of raw materials.
• Arnold maintains ending finished goods inventories equal to 20 percent of the following month’s budgeted sales.
•  Arnold maintains raw materials inventories equal to 25 percent of the following month’s budgeted production.
•  April | inventories are in line with Arnold’s inventory policy.
Arnold’s budgeted purchases (in pounds) for April is:

a. 66,000 pounds

b. 72,900 pounds.

c. 89,400 pounds

d. None of the above

Transcribed Image Text:

April May. June Sales 20,000 units 30,000 units 36,000 units