Answer (B) is correct . Each of the 400,000 units to be produced in April will require one unit of A-9, a total requirement of 400,000 units. In addition, ending inventory is expected to be 9,000 units. Hence, 409,000 units must be supplied during the month. Of these, 21,000 are available in the beginning inventory. Subtracting the 21,000 beginning inventory from 409,000 leaves 388,000 to be purchased.
Answer (A) is incorrect because The number of 379,000 units fails to consider the 9,000 units in the ending inventory.
Answer (C) is incorrect because Sales for the month equals 402,000 units.
Answer (D) is incorrect because Adding the decline in inventory of 12,000 to production needs instead of subtracting it results in 412,000.
|
Assume Superflite plans to manufacture 400,000?units in April. Superflite’s April budget for the purchase of A-9 should be
