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How many grams of raw materials Five-O plan to purchase

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Question - Five-O Corporation makes one product. Budgeted unit sales for the next four months are given below:

Budgeted unit sales

March 90,000

April 92,000

May 95,000

June 94,000

The ending finished goods inventory equals 15% of the following month's sales. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 3 grams of raw materials. The raw materials cost $6.00 per gram. How many grams of raw materials should Five-O plan to purchase for April?

a. 275,910 grams

b. 277,350 grams

c. 277,800 grams

d. 278,790 grams

e. 284,550 grams

Reference no: EM132536360

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