Question: Will give u a like/ thumbs up for sure! Thank you so much! Please answer by showing detailed steps with all the formulas and explanation
Will give u a like/ thumbs up for sure! Thank you so much!
Please answer by showing detailed steps with all the formulas and explanation :)
(PLSS direct NO Excel sheet answers)
ABC Corp. makes and sells candles. Each candle uses 0.6 kilogram of wax. Budgeted production of candles in units for the next five months is as follows:
| March | April | May | June | July |
|
| Budgeted production | 20,000 | 17,000 | 18,000 | 15,000 | 16,000 |
The company wants to maintain monthly ending inventories of wax equal to 25% of the following month's budgeted production needs. There were 1,300 kilograms of wax on hand on March 31 and 900 kilograms at March 1. The cost of wax is $0.75 per kilogram. ABC pays 45% of merchandise purchases in the month purchased and 55% in the following month.
a) Prepare a direct materials purchases budget for the April.
b) Determine how much cash will be paid for purchases during April.
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