Question
Yummy Foods expects to have 54,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company budgets
Yummy Foods expects to have 54,000 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 138,000 May 148,000 June 175,000 July 138,000 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 (in pounds) of raw materials for April should be: Multiple Choice 552,000 259,000 611,200 557,200 665,200
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