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14. The following are budgeted data: Sales, in units Production, in units Month 1 15,000 16,000 Month 2 20,000 22,000 Month 3 18,000 15.000 One
14. The following are budgeted data: Sales, in units Production, in units Month 1 15,000 16,000 Month 2 20,000 22,000 Month 3 18,000 15.000 One pound of material costing $2.50 per pound 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, 3,200 lbs. of materials were on hand. The cost of purchases of raw materials for Month 2 would be budgeted to be: a. $49,000. b. $58,500. c. $51,500 d. $43,000
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