1. A firm prepared its production budget and expects to produce 5,000 units in January and 6,000 units in February. It is now preparing its direct materials budget. Each unit requires 8 pounds of direct material. The firm currently has 3,000 pounds of material and has a desired ending inventory of 10%. Calculate the number of pounds the firm will need to purchase in January

A. 7,400 pounds

B. 2,600 pounds

C. 38,200 pounds

D. 41,800 pounds

Choose the correct answer (multiple choice)