Question

40. Roth Fashions manufactures Lycra pants. 3 yards of Lycra are used for each pair of pants. The following data was taken from Roth's direct materials budget. All amounts are shown in yards of Lycra: Ending inventory of Lycra Lycra purchases October 5,100 yds. 18,300 yds. November 4,200 yds. 16,200 yds. December 3,900 yds. 16,500 yds. How many pairs of pants are scheduled for production in November? a. 5,700 b. 5,500 c. 5,300 d. 5,100 e. None of the above.

Answer 1

Material Required for Production in October = Purchases + Beginning Inventory - Ending Inventory
= 16200 + 5100 - 4200 = 17100 yds.

Production in November = 17100 / 3 = 5700 units

Answer is a. 5700