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Figure 15-3
Projected Sales for Sommers, Inc The Selling Price Is £40 Per Unit

Question 40

Multiple Choice

Figure 15-3
Projected sales for Sommers, Inc., for next year and beginning and ending inventory data are as follows:  Sales 50,000 units  Beginning inventory 4,000 units  Desired ending inventory 8,000 units \begin{array}{lr}\text { Sales } & 50,000 \text { units } \\\text { Beginning inventory } & 4,000 \text { units } \\\text { Desired ending inventory } & 8,000 \text { units }\end{array} The selling price is £40 per unit. Each unit requires four pounds of material which costs £6 per pound. The beginning inventory of raw materials is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of the year.
-Refer to Figure 15-3. How many pounds of material would Sommers need to purchase?


A) 216,000
B) 225,000
C) 207,000
D) 201,000

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