Assume the sales budget for April and May is 35,000 units and 37,000 units, respectively. The...
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Assume the sales budget for April and May is 35,000 units and 37,000 units, respectively. The production budget for the same two months is 32,000 units and 33,000 units, respectively. Each unit of finished goods required 4 pounds of raw materials. The company always maintains raw materials inventory equal to 10% of the following months production needs. If the company pays $2.20 per pound of raw material, then what is the estimated cost of raw material purchases for April? $281,730 $288,230 $285,480 $282,480 Assume the sales budget for April and May is 35,000 units and 37,000 units, respectively. The production budget for the same two months is 32,000 units and 33,000 units, respectively. Each unit of finished goods required 4 pounds of raw materials. The company always maintains raw materials inventory equal to 10% of the following months production needs. If the company pays $2.20 per pound of raw material, then what is the estimated cost of raw material purchases for April? $281,730 $288,230 $285,480 $282,480
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Ans A1 B C D 2 April May 3 Sale Budget units 35000 37000 4 5 Production Budget units 32000 33000 6 7 ... View the full answer
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
Posted Date:
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