Question
On September 30 of Year 1, JayBob Company had raw materials inventory of 5,000 pounds. Starting in October, JayBob intends to have an inventory policy
On September 30 of Year 1, JayBob Company had raw materials inventory of 5,000 pounds. Starting in October, JayBob intends to have an inventory policy of maintaining ending raw materials inventory at the end of every month equal to the next ONE months production needs. For example, ending inventory at the end of October should be equal to forecasted raw materials needs for November production. Four pounds of raw materials are needed in the production of one finished unit. Forecasted PRODUCTION for the months October, Year 1 through December, Year 1 is as follows. October 4,300 units November 1,000 units December 700 units What is the amount of budgeted RAW MATERIALS PURCHASES for October?
17,000 pounds
17,200 pounds
16,200 pounds
24,000 pounds
19,000 pounds
21,200 pounds
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