The Following Are Budgeted Data: One Pound of Material

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) 19,000 pounds
B) 19,200 pounds
C) 23,000 pounds
D) 18,800 pounds