Question: In addition to the information presented in Mini Exercise 14.1, each unit that ABC Company produces uses 3 pounds of raw material. ABC requires 25%
In addition to the information presented in Mini Exercise 14.1, each unit that ABC Company produces uses 3 pounds of raw material. ABC requires 25% of the next month's budgeted production as raw material inventory each month.
In Mini Exercise 14.1, ABC Company's budgeted sales for June, July, and August are 12,000, 16,000, and 14,000 units, respectively. ABC requires 30% of the next month's budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 3,600 units.
Required:
Calculate the number of pounds of raw material to be purchased in June.
In Mini Exercise 14.1, ABC Company's budgeted sales for June, July, and August are 12,000, 16,000, and 14,000 units, respectively. ABC requires 30% of the next month's budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 3,600 units.
Required:
Calculate the number of pounds of raw material to be purchased in June.
Step by Step Solution
★★★★★
3.28 Rating (172 Votes )
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Use the same approach as M141 but notice that raw material used is a funct... View full answer
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Document Format (1 attachment)
262-B-M-A-P-P (300).docx
120 KBs Word File
