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Yummy Foods expects to have 40,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company budgets

Yummy Foods expects to have 40,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company budgets the following production (in units) for April through July, inclusive:

April 124,000
May 134,000
June 147,000
July 124,000

At the end of each month the firm desires its ending raw material inventory to be 10% of the next month's production needs. Each finished unit requires four pounds of raw materials. Yummy Foods budgeted purchases for raw materials (in pounds) during April should be:

Multiple Choice

  • 231,000.

  • 496,000.

  • 509,600.

  • 549,600.

  • 589,600.

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