Asked by Diana Imangeldieva on Jun 25, 2024
Verified
Snap,Inc.,provides the following data for the next three months:
Desired ending inventory:
Raw Materials = 30% of next month's production needs
Pounds of raw material required for each finished Unit = 5 lbs.
Calculate the amount of purchases of raw materials in pounds for April and May.
Raw Materials Purchases
The acquisition of the basic materials and components required for the production of goods.
Finished Unit
A product that has completed all stages of production and is ready for sale.
Production Needs
The specific resources and capacities required to complete production according to schedule, including materials, labor, and machinery.
- Recognize the procedure for developing a budget for purchases, factoring in sales predictions and preferred stock quantities.
Verified Answer
JP
Learning Objectives
- Recognize the procedure for developing a budget for purchases, factoring in sales predictions and preferred stock quantities.
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