Question
Roberts Company manufactures home cleaning products. One of the products, Quickclean, requires 2 pounds of Material A and 5 pounds of Material B per unit
Roberts Company manufactures home cleaning products. One of the products, Quickclean,
requires 2 pounds of Material A and 5 pounds of Material B per unit manufactured. Material
A can be purchased from the supplier for $0.30 per pound and Material B can be purchased
for $0.50 per pound. The finished goods inventory on hand at the end of each month must be
equal to 4,000 units plus 25% of the next month's sales. The raw materials inventory on hand
at the end of each month (for either Material A or Material B) must be equal to 80% of the
following month's production needs.
Assume that the production budget calls for 26,000 units of Quickclean to be manufactured in June and 32,000 units of Quickclean to be manufactured in July. On May 31 there will be 41,600 pounds of Material A in inventory. The number of pounds of Material A needed for production during June would be: A) 61,600 B) 51,200 C) 35,600 D) 52,000
Assume that the production budget calls for 26,000 units of Quickclean to be manufactured in June and 32,000 units to be manufactured in July. On May 31 there will be 104,000 pounds of Material B in inventory. The number of pounds of Material B to be purchased during June would be: A) 128,000 B) 130,000 C) 154,000 D) 160,000
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