A is corrent. To calculate the number of units of raw materials to be purchased in June, we must first determine the production of bags of chips for the month, which is equal to 83,000 bags (80,000 sales + 18,000 desired ending inventory – 15,000 beginning inventory). The raw material required for June production would then be calculated as 415,000 (83,000 × 5). Finally, the required raw material purchase would be calculated as 411,000 [415,000 + 23,000 (desired ending inventory) – 27,000 (beginning inventory)].
B is incorrect. The number of units is 411,000.
C is incorrect. The number of units is 411,000.
D is incorrect. The number of units is 411,000.
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