Asked by Chelianne Leata Miller on May 21, 2024
Verified
If 60,500 pounds of raw materials are required for production in December, then the budgeted cost of raw material purchases for November is closest to:
A) $91,880
B) $139,520
C) $79,400
D) $115,700
Budgeted Cost
An estimated amount set aside for expenditures in the budgeting process, serving as a financial guideline for spending.
Raw Material Purchases
The acquisition of basic materials that are either consumed in the production process or included as part of the finished goods.
- Determine the budgetary allocation for the procurement of raw materials, factoring in the demands of manufacturing and the price of these resources.
Verified Answer
AP
Abhishek PattnaikMay 26, 2024
Final Answer :
A
Explanation :
The budgeted required production for November is computed as follows: *December sales of 11,300 units × 20% = 2,260 units
** November sales of 7,100 units × 20%= 1,420 units
The budgeted raw material purchases for November are computed as follows: * 60,500 pounds × 30% = 18,150 pounds.
** 39,700 pounds × 30% = 11,910 pounds.
The budgeted cost of raw material purchases for November is computed as follows:
** November sales of 7,100 units × 20%= 1,420 units
The budgeted raw material purchases for November are computed as follows: * 60,500 pounds × 30% = 18,150 pounds.
** 39,700 pounds × 30% = 11,910 pounds.
The budgeted cost of raw material purchases for November is computed as follows:
Learning Objectives
- Determine the budgetary allocation for the procurement of raw materials, factoring in the demands of manufacturing and the price of these resources.
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