Question
The TS Company has budgeted sales for the year as follows: Sales in units Quorter 1 10,000 Quorter 2 12,000 Quorter 3 14,000 Quorter 4
The TS Company has budgeted sales for the year as follows:
Sales in units
Quorter 1 10,000
Quorter 2 12,000
Quorter 3 14,000
Quorter 4 16,000
The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 2,500 units. Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in material.
Scheduled purchases of raw materials for the second quarter should be:
A)50,000 pounds
B)55,800 pounds
C)50,800 pounds
D)55,000 pounds
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