Question

Charm Enterprises' production budget shows the following units to be produced for the coming three months:

April May June
Units to be produced "u00a6"u00a6"u00a6.. 2,560 2,880 2,760

A finished unit requires four ounces of a key direct material. The March 31 Raw Materials inventory has 2,560 ounces (oz.) of the material. Each month's ending Raw Materials inventory should be 35% of the following month's production needs. The materials to be purchased during May should be:
A. 11,352 oz.
B. 11,520 oz.
C. 7,448 oz.
D. 15,384 oz.
E. 7,616 oz.

Answer

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