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Doanne Food Processing expects to have 37,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The
Doanne Food Processing expects to have 37,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company budgets the following production (in units) for April through July, inclusive: April May 121,000 131,000 June 141,000 July 121,000 At the end of each month the firm desires its ending raw material inventory to be 15% of the next month's production needs. Each finished unit requires four pounds of raw materials. Doanne's budgeted purchases for raw materials (in pounds) during April should be: 225,000. 562,600. 484,000. 525,600. 599,600.
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