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Mayor Corporation has the following required production in units for Year 2the coming yearand for the first Year 2 Quarter Year 3 Quarter 1 2
Mayor Corporation has the following required production in units for Year 2the coming yearand for the first
| Year 2 Quarter | Year 3 Quarter | ||||
| 1 | 2 | 3 | 4 | 1 | |
| Budgeted Units Sales | 46,000 | 72,000 | 85,000 | 56,000 | 73,000 |
Five pounds of raw materials are required to complete one unit of product. The company requires ending raw materials inventory at the end of each quarter equal to 10% of the following quarter's production needs. On December 31, Year 1, the company had 23,000 pounds of raw materials on hand.
How much materials should be purchased in Year 2 Quarter 1? a. 243,000 pounds b. 366,500 pounds c. 289,000 pounds d. None of the above
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