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Assume for a firm that budgeted production for July and August is 180 000 and 200 000 units respectively. It takes half a kilogram of
Assume for a firm that budgeted production for July and August is 180 000 and 200 000 units respectively. It takes half a kilogram of direct material to make one unit of finished product. Materials inventory is maintained at 1O per cent of the next month's budgeted production needs. If the 30 June inventory of materials was 5 000 kgs, how many kgs of direct mat erial should be purchased during July?
A. 105 000 kgs
B. 19 5 000 kgs
90 000 kgs
95 000 kgs
N one of the above
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