Question: Please help me with Q2. my answer resulted in 21200 pounds, just making sure. I might be wrong 2 On September 30 of Year 1,

Please help me with Q2. my answer resulted in 21200 pounds, just making sure. I might be wrong

Please help me with Q2. my answer resulted in 21200 pounds, just

2 On September 30 of Year 1, JayBob Company had raw materials inventory of 5,000 pounds. Starting in October, JayBob intends to have an inventory policy of maintaining ending raw materials inventory at the end of every month equal to the next TWO months' production needs. For example, ending inventory at the end of October should be equal to forecasted raw materials needs for November production plus forecasted raw materials needs for December production. Four pounds of raw materials are needed in the production of one finished unit. Forecasted PRODUCTION for the months October, Year 1 through December, Year 1 is as follows. October 4,300 units November 1,000 units December 700 units What is the amount of budgeted RAW MATERIALS PURCHASES for October? 19,000 pounds 17,000 pounds 21,200 pounds O 24,000 pounds 17,200 pounds

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!