It is now the beginning of January Sales are forecast at 100,000 units for January, 130,000 units for February, and 150,000 units for March. Ending inventory of finished product should be 20% of next months sales. Each unit of finished product requires 0.5 lb. of materials. Ending inventory of materials should be 10% of next months production needs. Beginning inventory of finished product is 22,000 units. Beginning inventory of materials is 5,500 lbs.

12. What is forecasted production for January?

a. 104,000 units

b. 96,000 units

c. 106,500 units

d. 102,500 units

13. If the forecasted production for February is 134,000 units. What amount of materials should be purchased in January?

a. 52,000 lbs.

*b. 53,200 lbs.

c. 54,500 lbs.

d. 51,600 lbs.