Boulware Company's Budgeted Production Calls for 5,000 Units in October

Boulware Company's budgeted production calls for 5,000 units in October and 8,000 units in November. Each unit requires 8 pounds (lbs.) of raw material A. Each month's ending inventory of raw materials should equal 20% of the following month's budgeted materials requirements. The October 1 inventory for this material is 8,000 pounds. What is the budgeted materials purchases for this key material in pounds for October?

A) 40,000 lbs.
B) 35,200 lbs.
C) 52,800 lbs.
D) 44,800 lbs.
E) 60,800 lbs.

Correct Answer:

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