Question
The Booger Company had budgeted production for 2020 as follows: Quarter 1: 10,000 units Quarter 2: 12,000 units Quarter 3: 16,000 units Quarter 4: 14,000
The Booger Company had budgeted production for 2020 as follows:
Quarter 1: 10,000 units
Quarter 2: 12,000 units
Quarter 3: 16,000 units
Quarter 4: 14,000 units
Four pounds of raw materials are required for each unit produced. Raw materials on hand at the beginning of 2020 equals 4,000 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in materials. Budgeted purchases of raw materials in the third quarter would be (in pounds):
Select one:
a.50,400 pounds
b.62,400 pounds
c.56,800 pounds
d.63,200 pounds
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