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QUESTION

Charm Enterprises' production budget shows the following units to be produced for the coming three months:

3,760 

A finished unit requires four ounces of a key direct material. The March 31 Raw Materials Inventory has 5,432 ounces (oz.) of the material. Each month's ending Raw Materials Inventory should be 35% of the following month's production needs. The materials to be purchased during May should be:

  • 10,256 oz.
  • 15,520 oz.
  • 10,088 oz.
  • 15,352 oz.
  • 20,784 oz.
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