Question
Noah Corp. needs 3 lbs. of materials for every unit that they produce. Noah pays $1.50 per pound. It is estimated that sales will be
Noah Corp. needs 3 lbs. of materials for every unit that they produce. Noah pays $1.50 per pound. It is estimated that sales will be 5,000 units in June and 6,000 units in July, and required production for June is estimated to be 5,200 units. July's required production is estimated to be 5,900 units. Noah likes to have 10% of next month's raw materials in inventory the period before they are needed. The raw materials balance on May 31 is 600 lbs. What is the total cost of raw materials to be purchased in June? A. $7,500 B. $7,785 C. $25,155 D. $22,500
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