Question

Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of

Material A to make one Bik. Budgeted production of Biks for the next five months is as follows:The total needs (i.e., production requirements plus desired ending inventory) of Material A for the month
of May are:
A. 37,800 yards
B. 45,360 yards
C. 46,500 yards
D. 38,940 yards

Answer 1

To determine the total needs of Material A for the month of May, we need to add the production requirements and the desired ending inventory. The correct answer is 37,800 yards.

Step-by-step explanation:

The question pertains to calculating the total needs of Material A for the production of a product called a Bik for the month of May. To find the total needs, we have to account not only for the budgeted production of Biks but also for the desired ending inventory of Material A. To determine the total needs of Material A for the month of May, we need to add the production requirements and the desired ending inventory. Given that it takes three yards of Material A to make one Bik, we can calculate the total needs by multiplying the budgeted production of Biks for May (38,000) by the material requirement (3 yards/Bik). Adding the desired ending inventory of Material A (1,800 yards), we get a total need of 37,800 yards (38,000 x 3 + 1,800).

Therefore, the correct answer is option A. The total needs of Material A for the month of May are 37,800 yards.