Reference: 20_04
Kyoto, Inc $\begin{array}{llr}&\text { April}&\text { May}&\text { June}&\text { July }\\\text { Sales in units } &240&280&300&240\\\end{array}$

Multiple Choice

Reference: 20_04
Kyoto, Inc. predicts the following sales in units for the coming four months:
$\begin{array}{llr}&\text { April}&\text { May}&\text { June}&\text { July }\\\text { Sales in units } &240&280&300&240\\\end{array}$
Although each month's ending inventory of finished units should be 60% of the next month's sales, the March 31 finished goods inventory is only 100 units. A finished unit requires five pounds of raw material B. The March 31 raw materials inventory has 200 pounds of B. Each month's ending inventory of raw materials should be 30% of the following month's production needs.
-The budgeted purchases of pounds of raw material B during May should be:

A) 1,418 pounds
B) 1,460 pounds
C) 1,502 pounds
D) 264 pounds
E) 283 pounds