Assume that a company expects to produce 11,200, 12,200, and 14,200 units of finished goods in January, February, and March, respectively. Each finished goods requires 4 pounds of raw material and each pound of raw material costs $4.00. The company always maintains an ending raw mate inventory equal to 30% of next month's production needs. What is the amount of expected raw materials purchases for February? Multiple Choice $167,360 О $195,200 о $153,600 О $204,800

Assume that a company expects to produce 11,200, 12,200, and 14,200 units of finished goods in January, February, and March, respectively. Each finished goods requires 4 pounds of raw material and each pound of raw material costs $4.00. The company always maintains an ending raw mate inventory equal to 30% of next month's production needs. What is the amount of expected raw materials purchases for February? Multiple Choice $167,360 О $195,200 о $153,600 О $204,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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