The following are budgeted dа ta:Sales (units) Production (units) April 15,000 18,000May 20,000 19,000June 18,000 16,000Two pounds 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. Purchases of raw materials for May should be:a. 36,800 poundsb. 39,200 poundsc. 52,000 poundsd. 38,000 pounds

Total = 36,800 pounds

Explanation:

Giving the following information:

Sales (units) - Production (units):

May: 20,000 - 19,000

June: 18,000 - 16,000

Two pounds 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.

Purchases for May = production for the month + desired ending inventory - beginning inventory

Production = 19,000*2 pounds = 38,000 pounds

Desired ending inventory = (16,000*2) * 0.2 = 6,400 pounds

Beginning inventory = (38,000*0.2) = (7,600)

Total = 36,800 pounds