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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

  • 37,800 lbs.

  • 43,050 lbs.

  • 52,500 lbs.

  • 61,950 lbs.

  • 32,550 lbs.

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