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Question
Big Company manufactures keyboards. Management wishes to develop budgets for the upcoming quarter based on the following data:
| Sales in units | 800 units | |
| Selling price per unit | $60 | |
| Inventory at beginning of the quarter (FG) | 80 units | |
| Desired ending inventory (FG) | 130 units | |
| Direct materials per unit: | 4 ounces plastic | |
| Plastic inventory at beginning of quarter | 136 ounces | |
| Desired ending inventory of plastic | 84 ounces | |
| Plastic cost | $.18 per ounce | |
Compute the budgeted quantity of plastic that needs to be purchased for the next quarter.
A. 850 ounces
B. 3,348 ounces
C. 3,452 ounces
D. 798 ounces
E. 902 ounces
Answer
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