61. CSO: 1A4a LOS: 1A4g
In preparing the direct material purchases budget for next quarter, the plant controller has
the following information available.
Budgeted unit sales 2,000
Pounds of materials per unit 4
Cost of materials per pound $3
Pounds of materials on hand 400
Finished units on hand 250
Target ending units inventory 325
Target ending inventory of pounds of materials 800
How many pounds of materials must be purchased?
a. 2,475.
b. 7,900.
c. 8,700.
d. 9,300.
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