Gretchen Reid

Business

8 July, 18:42

Sales in Units: Month 1 = 15,000; Month 2 = 20,000; Month 3 = 18,000

Production in Units: Month 1 = 16,000; Month 2 = 22,000; Month 3 = 15,000

One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. At the beginning of Month 1, 3,200 lbs. of materials were on hand. Purchases of raw materials for Month 2 would be budgeted to be

17,600 pounds

23,400 pounds

20,600 pounds

25,000 pounds