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Adham Company has budgeted to produce 20,000 units in January and 30,000 units in February....

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Accounting

Adham Company has budgeted to produce 20,000 units in January and 30,000 units in February. Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each month equal to 20% of the next month's production needs for material A. A total of 8,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for January would be:

Select one:

a. 30,000 pounds

b. 165,000 pounds

c. 22,000 pounds

d. 44,000 pounds

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