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Boben Corporation makes one product. Below is budgeted production (in units) for the third quarter of the year. July August September Budgeted production 8,500 9,000
Boben Corporation makes one product. Below is budgeted production (in units) for the third quarter of the year.
July | August | September | |
---|---|---|---|
Budgeted production | 8,500 | 9,000 | 13,900 |
Each unit requires 6 pounds of raw materials, at a cost of $2.00 per pound.
Assuming Boben desires to maintain an ending raw materials inventory equal to 30% of the following month's production needs, how many pounds of raw materials does Boben need to purchase in August?
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