A firm plans to produce 20,000 units, each requiring 3 lbs of material. Beginning material inventory is 5,000 lbs; desired ending is 8,000 lbs. Materials to be purchased (lbs) equal:

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Multiple choice — select the best answer

A60,000
B57,000
C63,000
D68,000

✓ Correct answer: C. 63,000 Materials needed for production = 20,000 x 3 = 60,000 lbs. Purchases = 60,000 + 8,000 ending - 5,000 beginning = 63,000 lbs.

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Topic: Planning & Budgeting

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A firm plans to produce 20,000 units, each requiring 3 lbs of material. Beginning material inventory is 5,000 lbs; desired ending is 8,000 lbs. Materials to be purchased (lbs) equal:

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