Question

Steve Co. plans to sell 91,000 units of product #101 in the month of May. Each...

Steve Co. plans to sell 91,000 units of product #101 in the month of May.
Each unit of product # 101 requires three pounds of Raw Material (RM #10).
The budget records of Steve Co. indicates the following budgeted inventory for product # 101 and RM#10.
Product # 101 RM #10
Desired inventory for May 1 11,600 units 29,600 units
Desired inventory for May 31 17,600 units 20,600 units
Budgeted quantity of RM#10 required for the production of each unit of Product #101 = 3 pounds
How many pounds of RM#10 need to be purchased in the month of May?
A.
291,000 pounds
B.
273,000 pounds
C.
282,000 pounds
D.
255,000 pounds
E.
300,000 pounds
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