QUESTION 33

1. The following are budgeted data:

   	Sales (units)	Production (units)
   April	15,000	18,000
   May	20,000	19,000
   June	18,000	16,000

   Two pounds of material are required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. The material at the beginning of May is 7,600 pounds. Purchases of raw materials for May should be:

   		36,800 pounds
   		38,000 pounds
   		41,600 pounds
   		52,000 pounds
   		39,200 pounds