The following are budgeted data: January February March Sales in units 15,500 21,000 18,500 Production in...

The following are budgeted data:

	January	February	March
Sales in units	15,500	21,000	18,500
Production in units	18,500	19,500	17,400

One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 30% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:

Multiple Choice

19,970 pounds
18,630 pounds
18,870 pounds
20,130 pounds

Solutions

Expert Solution

18,870 pounds

	January	February	March
Budgeted units to be Produced	18,500	19,500	17,400
Materials required per unit	1	1	1
Material units required for production	18,500	19,500	17,400
Plus: desired budgeted ending inventory	5,850	5,220	-
Total material units reuired	24,350	24,720	17,400
Less: Beginning Inventory		5,850
Material units to be purchased		18,870

ekkarill92 answered 1 year ago

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