Question: Hello, I need some help figuring out how to solve the problem below for accounting. Please show the work that is needed to be done
Hello, I need some help figuring out how to solve the problem below for accounting. Please show the work that is needed to be done so that I can refer back to it for future problems. Thank you!
Here is the question:
Assume the sales budget for April and May is 33,000 units and 35,000 units, respectively. The production budget for the same two months is 30,000 units and 31,000 units, respectively. Each unit of finished goods required 4 pounds of raw materials. The company always maintains raw materials inventory equal to 25% of the following months production needs. If the company pays $2.10 per pound of raw material, then what is the estimated cost of raw material purchases for April?
Here are the answer choices:
$259,850
$253,350
$257,100
$254,100
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