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Boulware Companys budgeted production calls for 5,400 units in October and 8,400 units in November. Each unit requires 7 pounds (lbs.) of raw material A.
Boulware Companys budgeted production calls for 5,400 units in October and 8,400 units in November. Each unit requires 7 pounds (lbs.) of raw material A. Each months ending inventory of raw materials should equal 25% of the following months budgeted materials requirements. The October 1 inventory for this material is 9,450 pounds. What is the budgeted materials purchases in pounds for October?
Multiple Choice
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37,800 lbs.
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43,050 lbs.
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52,500 lbs.
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61,950 lbs.
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32,550 lbs.
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