Question
In: Accounting
A manufacturing business makes and sells widgets. Each widget requires two units of raw materials, which...
- A manufacturing business makes and sells widgets. Each widget requires two units of raw materials, which cost $3 each. Production and sales quantities of widgets each month are as follows:
|
Month |
Sales and production units |
|
December (actual) |
50,000 |
|
January (budget) |
55,000 |
|
February (budget) |
60,000 |
|
March (budget) |
65,000 |
In the past, the business has maintained its inventories of raw materials at 100,000 units. However, it plans to increase raw material inventories to 110,000 units at the end of January and 120,000 units at the end of February. The business takes one month’s credit from its suppliers.
Required:
Calculate the forecast payments to suppliers each month, for raw material purchases.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
A manufacturing business makes and sells widgets. Each widget requires two units of raw materials which...
A manufacturing business makes and sells widgets. Each widget
requires two units of raw materials which costs $3.00 each.
Production and sales quantities of widgets each month are as
follows: Month Sales and Production December (Actual) 50,000 units
January (Budget) 55,000 units February (Budget) 60,000 units March
(Budget) 65,000 units In the past the business has maintained its
inventories of raw materials at 100,000 units. However, it plans to
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are financed with 10 percent debt, with the balance financed by
common stock at $10 par value per share. The tax rate is 40
percent.
His brother-in-law, Mr. Silverman, says Mr....
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