The Molson Company had budgeted production for the year as follows:Quarter1234Production in units10,00012,00016,00014,000Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 lbs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in materials. Budgeted purchases of raw materials in the second quarter would be:

A. 48,000 lbs.
B. 54,400 lbs.
C. 49,600 lbs.
D. 46,400 lbs.


Answer: C

Business

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