q.15

Fact Pattern: A company produces a product that requires 2 pounds of a raw material. It is forecast that there will be 6,000 pounds of raw material on hand at the end of June. At the end of any given month, the company wishes to have 30% of next month's raw matenal requirements on hand. The company has budgeted production of the product for July, August, September, and October to be 10,000,12,000,13,000, and 11,000 units, respectively. As of June 1 , the raw material sells for $1.00 per pound In the month of September, raw material purchases and ending inventory, respectively, will be (in pounds): A. 24,800 and 6,600 B. 32,600 and 6,600 . C. 24,800 and 3,900 . D. 13,000 and 3,900