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Bentsen Corporation Makes One Product

Question 71

Multiple Choice

Bentsen Corporation makes one product. Bentsen Corporation makes one product. The ending finished goods inventory equals 40% of the following month's sales.The ending raw materials inventory equals 10% of the following month's raw materials production needs.Each unit of finished goods requires 6 pounds of raw materials.The raw materials cost $2.00 per pound.If 76,680 pounds of raw materials are required for production in September, then the budgeted cost of raw material purchases for August is closest to: A) $133,704 B) $131,520 C) $160,008 D) $146,856 The ending finished goods inventory equals 40% of the following month's sales.The ending raw materials inventory equals 10% of the following month's raw materials production needs.Each unit of finished goods requires 6 pounds of raw materials.The raw materials cost $2.00 per pound.If 76,680 pounds of raw materials are required for production in September, then the budgeted cost of raw material purchases for August is closest to:


A) $133,704
B) $131,520
C) $160,008
D) $146,856

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