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4) An equipment supply manager at a large outlet needs to prepare a direct materials...

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Accounting

4) An equipment supply manager at a large outlet needs to prepare a direct materials budget. The budgeted production amounts to 5,200 units and each unit requires 2 lbs of materials. The desired ending inventory of direct materials is 700 lbs, and the beginning inventory of materials shows 1,000 lbs. Compute the amount of direct materials purchases needed to support this Production Budget.

A. 11,400 lbs

B. 10,400 lbs

C. 10,100 lbs

D. 5,200 lbs

E. 9,400 lbs

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