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Question
Blaircraft Company manufactures a product that requires five pounds of raw material for each unit produced. For the next year, beginning inventory of raw materials is 8,000 pounds. The raw materials inventory at the end of each quarter should be 15% of the next quarters raw materials needed for production. Given the projected production in units below, what is the quantity of raw materials that needs to be purchased for the third quarter?
| Quarter | 1 | 2 | 3 | 4 |
| Expected production Units | 7,000 | 5,000 | 8,000 | 6,000 |
A. 41,500 pounds
B. 40,000 pounds
C. 38,500 pounds
D. 7,7000 pounds
E. 8,300 pounds
Answer
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