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59 On September 30 of Year 1, a company had raw materials inventory of 30,000 pounds. Starting in October, the company intends to have an
59 On September 30 of Year 1, a company had raw materials inventory of 30,000 pounds. Starting in October, the company intends to have an inventory policy of maintaining ending raw materials inventory at the end of every month equal to the next two months' production needs. Six pounds of raw materials are needed in the production of one finished unit. Forecasted production for the months October, Year 1 through December, Year 1 is as follows: Month Units October 4,000 units November 5,500 units December 2,500 units What is the amount of budgeted pounds of raw material to be purchased for October? 6.000 24,000 27,000 42,000
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