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Wright & Boyle Company Budgeted the Following Production in Units

Question 94

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Wright & Boyle Company budgeted the following production in units for the second quarter of the year:
Wright & Boyle Company budgeted the following production in units for the second quarter of the year:      Each unit requires five pounds of raw material.Wright & Boyle's policy is to have 20% of the following month's production needs for materials in inventory.This policy was met in March.Raw materials purchases budgeted for May in pounds equal: A)  219,000 pounds. B)  202,400 pounds. C)  45,600 pounds. D)  171,600 pounds. E)  225,600 pounds. Each unit requires five pounds of raw material.Wright & Boyle's policy is to have 20% of the following month's production needs for materials in inventory.This policy was met in March.Raw materials purchases budgeted for May in pounds equal:


A) 219,000 pounds.
B) 202,400 pounds.
C) 45,600 pounds.
D) 171,600 pounds.
E) 225,600 pounds.

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