Asked by Diwas Bhatt? on Jul 08, 2024
Verified
If 41,920 pounds of raw materials are required for production in September, then the budgeted raw material purchases for August is closest to:
A) 57,056 pounds
B) 44,480 pounds
C) 43,712 pounds
D) 70,400 pounds
Budgeted Raw Material Purchases
The estimated amount of raw materials to be acquired during a specific period to meet production needs, based on forecasted sales.
- Estimate the planned spending on raw material purchases by evaluating production necessities and the charges for these materials.
Verified Answer
ZK
Zybrea KnightJul 08, 2024
Final Answer :
C
Explanation :
The budgeted required production for August is computed as follows: *September sales of 10,400 units × 20% = 2,080 units
** August sales of 11,300 units × 20%= 2,260 units
The budgeted raw material purchases for August are computed as follows: * 41,920 pounds × 30% = 12,576 pounds.
** 44,480 pounds × 30% = 13,344 pounds.
** August sales of 11,300 units × 20%= 2,260 units
The budgeted raw material purchases for August are computed as follows: * 41,920 pounds × 30% = 12,576 pounds.
** 44,480 pounds × 30% = 13,344 pounds.
Learning Objectives
- Estimate the planned spending on raw material purchases by evaluating production necessities and the charges for these materials.
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