1. In preparing the direct material purchase budget for next quarter, the plant controller has the following information available.

Budgeted unit sales 2,000 Pounds of materials per unit 4# Cost of materials per pound $3 Pounds of materials on hand 400# Finished units on hand 250 Target ending units inventory 325 Target ending inventory of pounds of materials 800#

How many pounds of materials must be purchased?

a. 7,900

b. 8,700

c. 2,475

d. 9,300