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Yummy Foods expects to have 41,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company budgets
Yummy Foods expects to have 41,000 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:
April125,000May135,000June149,000July125,000At 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 (in pounds) of raw materials for June would be:
Multiple Choice
586,400.
596,000.
605,600.
646,000.
705,600.
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