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Figure 1 Projected Sales for Sommers, Inc., for Next Year and Beginning

Question 109

Multiple Choice

Figure 1
Projected sales for Sommers, Inc., for next year and beginning and ending inventory data are as follows:
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 1. 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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