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A company has budgeted sales for the upcoming quarter as follows: January February March Units 15,000 18,000 16,500 The ending finished goods inventory for each month equals 50% of the next month's budgeted sales. Additionally, 3 pounds of raw materials are required for each finished unit produced. The ending raw materials inventory for each month equals 200% of the next month's production requirements. If the raw materials cost $4.00 per pound and must be paid for in the month purchased, the budgeted raw materials purchases (in dollars) for January are
A. $180,000 B. $207,000 C. $198,000 D. $216,000 |