Question
Five-O Corporation makes one product.Budgeted unit sales for the next four months are given below: Budgeted unit sales March 90,000 April 92,000 May 95,000 June
Five-O Corporation makes one product.Budgeted unit sales for the next four months are given below:
Budgeted unit sales
March 90,000
April 92,000
May 95,000
June 94,000
The ending finished goods inventory equals 15% of the following month's sales. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 3 grams of raw materials. The raw materials cost $6.00 per gram. How many grams of raw materials should Five-O plan to purchase for April?
a.275,910 grams
b.277,350 grams
c.277,800 grams
d.278,790 grams
e.284,550 grams
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