The Following Are Budgeted Data

Multiple Choice

The following are budgeted data:
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.Purchases of raw materials for February would be budgeted to be:

A) 19,600 pounds
B) 20,400 pounds
C) 18,400 pounds
D) 18,600 pounds