Zhang Industries Budgets Production of 300 Units in June and 310

Multiple Choice

Zhang Industries budgets production of 300 units in June and 310 units in July.Each finished unit requires 4 pounds of raw material K,which costs $5 per pound.Each month's ending inventory of raw materials should be 30% of the following month's budgeted production.The June 1 raw materials inventory has 360 pounds of raw material K.Compute the budgeted cost of purchases for raw material K for June.

A) $4,400.
B) $6,000.
C) $6,200.
D) $6,060.
E) $6,100.