Reference no: EM131609909

Question - Victoria Corporation manufactures quality vases. Budgeted sales and production data for the vases are as follows:

January budgeted unit sales - 2,000

February budgeted unit sales - 2,500

March budged unit sales - 3,200

January budged unit production - 2,400

February budged unit production - 2,700

March budged unit production - 3,400

Raw material required for each finished unit (in pounds) - 1

The ending inventory for each month should be equal to 20% of the next month's production needs. Each vase requires one pound of clay in its manufacture. Victoria Corporation has a policy that the inventory of clay at the end of each month needs to be equal to 20% of the prodcution needs for the following month. At the beginning of January, 480 pounds of clay were in inventory. How many pounds of clay would Victoria Corporation need to purchase in February?

A) 3,620

B) 2,840

C) 2,940

D) 2,660