Super Solar Systems Has Forecast the Following Unit Sales and Production

Super Solar Systems has forecast the following unit sales and production for the next year, by quarter: $$\begin{array} { | l | l | l | l | l | } \hline & 1 ^ { \text {st } } & 2 ^ { \text {nd } } & 3 ^ { \text {rd } } & 4 ^ { \text {th } } \\\hline \text { Production } & 75 & 80 & 70 & 50 \\\hline \text { Sales } & 60 & 70 & 75 & 60 \\\hline\end{array}$$ Super Solar has the following beginning inventories:
$$\begin{array} { | l | l | } \hline \text { Firished Goods } & 50 \\\hline \text { Direct Material A } & 50 \\\hline \text { Direct Material B } & 50 \\\hline\end{array}$$ A finished unit requires one unit of material A and two units of material
B There should be enough material on hand at the end of each quarter to meet 20% of the next quarter's production needs. There are no work-in-process inventories. How much material B must be purchased in quarter 1?

A) 264
B) 132
C) 150
D) 160

Correct Answer:

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