Sales in Units: Month 1 = 15,000; Month 2 = 20,000; Month 3 = 18,000
Production in Units: Month 1 = 16,000; Month 2 = 22,000; Month 3 = 15,000
One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. At the beginning of Month 1, 3,200 lbs. of materials were on hand. Purchases of raw materials for Month 2 would be budgeted to be
17,600 pounds
23,400 pounds
20,600 pounds
25,000 pounds
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