QUESTION 11

Sartain Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

	Beginning Inventory	Ending Inventory
Finished goods (units)	24,000	74,000
Raw material (grams)	54,000	44,000

Each unit of finished goods requires 2 grams of raw material.

If the company plans to sell 590,000 units during the year, how much of the raw material should the company purchase during the year?

	A.	1,324,000 grams
	B.	1,270,000 grams
	C.	1,280,000 grams
	D.	1,294,000 grams

7 points

QUESTION 12

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.3 hours of direct labor at the rate of $19.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

The budgeted direct labor cost per unit of Product WZ would be:

	A.	$20.10
	B.	$19.00
	C.	$43.70
	D.	$5.60