Answer:
The correct answer is C.
Explanation:
Giving the following information:
The Tobler Company had budgeted production for the year as follows:
Quarter 1 2 3 4
Production in units 10,000 9,000 13,000 11,000
4 pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 7,000 lbs. The raw materials inventory at the end of each quarter should equal 9% of the next quarter's production needs in materials.
Direct material 2nd quarter:
Production= 9,000*4= 36,000lbs
Ending inventory= (13,000*0.09)*4= 4,680lbs
Beginning inventory= (9,000*0.09)*4= 3,240lbs (-)
Total= 37,440 lbs
