Question

Reaser Corporation makes one product. 

	April	May	June	July
Budgeted unit sales	8,400	8,700	12,600	13,100

 

Each unit of finished goods requires 4 pounds of raw materials. The ending finished goods inventory equals 10% of the following month's sales. The ending raw materials inventory equals 40% of the following month's raw materials production needs. If 50,600 pounds of raw materials are required for production in June, then the budgeted raw material purchases for May is closest to:

Answer 1

Answer: 42056 pounds