Advantage Production has a policy of having sufficient direct materials inventory on hand at the end

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Advantage Production has a policy of having sufficient direct materials inventory on hand at the end of each month equal to 25% of next month’s budgeted production needs. The company has budgeted production of 12,000 clipboards in June and 15,000 units in July. It takes 1.5 pounds of resin to produce one clipboard and 4,500 pounds of resin were on hand on May 31. How many pounds of resin should be purchased in the month of June?

a. 13,500 pounds

b. 17,250 pounds

c. 19,125 pounds

d. 11,250 pounds

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