Question

Skymont Company wants a raw materials ending inventory each month equal to 30% of that month's production needs. The production needs in February are projected at 45,000 lb or raw materials. Ending raw materials inventory at the end of January was 12,000 lb. Based on this information, raw materials purchases for February would be:__________.
a) $33,000.
b) $31,500.
c) $43,500.
d) $46,500.

Answer 1

Answer: D
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