Question

Production of Product B has been budgeted at 200,000 units for November. One unit of Product...

Production of Product B has been budgeted at 200,000 units for November. One unit of Product B requires 2.5 lbs. of raw material. The projected beginning and ending materials inventory for November are: Beginning inventory: 5,000 lbs. Ending inventory: 70,000 lbs. How many lbs. of material should be purchased during November? A. 525,000 B. 548,000 C. 577,000 D. 565,000

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Product B budgeted Production 200000 Units
Raw material per unit 2.5 lbs
Total raw material issued for production = 500000 lbs
(200000*2.5)
Closing inventory 70000 lbs
Issued or used in production = 500000 lbs
Less : Opening invnetory -5000 lbs
____________
Material purchased 565000 lbs
____________
So, 565,000 lbs. is required to be purchased during november.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ELECTRO COMPANY Direct Materials Budget Second Quarter Budgeted production (units) 550,000 units Materials needed for production...
ELECTRO COMPANY Direct Materials Budget Second Quarter Budgeted production (units) 550,000 units Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Budgeted cost of direct materials purchases Electro Company budgets production of 550,000 transmissions in the second quarter and 625,000 transmissions in the third quarter. Each transmission requires 0.8 pounds of a key raw material. The Company aims to end each quarter with an ending inventory of direct materials equal to 20% of next quarter’s...
Aborkian Co. is forecasting sales of 75,000 units of product for November. To make one unit...
Aborkian Co. is forecasting sales of 75,000 units of product for November. To make one unit of finished product, seven pounds of raw materials are required. Actual beginning and desired ending inventories of raw materials and finished goods are: November 1 November 30 (Actual) (Desired) Raw materials (pounds) 91,400 86,400 Finished goods 8,500 9,600 (a.) Calculate the number of units of product to be produced during November. (b.) Calculate the number of pounds of raw materials to be purchased during...
ZIRA CO. Direct Materials Budget For April, May, and June April May June Budgeted production (units)...
ZIRA CO. Direct Materials Budget For April, May, and June April May June Budgeted production (units) 694 735 727 units Materials requirements per unit 4 4 4 lbs. Materials needed for production (lbs.) 2,776 2,940 2,908 lbs. Budgeted ending inventory (lbs.) 882 872 872 lbs. Total materials requirements (lbs.) 3,658 3,812 3,780 lbs. Beginning inventory (lbs.) 833 882 872 lbs. Materials to be purchased (lbs.) 2,825 2,930 2,908 lbs. Cost per lb. $4 $4 $4 per lb. Total budgeted direct...
Boben Corporation makes one product. Below is budgeted production (in units) for the third quarter of...
Boben Corporation makes one product. Below is budgeted production (in units) for the third quarter of the year. July August September Budgeted production 8,500 9,000 13,900 Each unit requires 6 pounds of raw materials, at a cost of $2.00 per pound. Assuming Boben desires to maintain an ending raw materials inventory equal to 30% of the following month's production needs, how many pounds of raw materials does Boben need to purchase in August?
The Bridget Company has budgeted sales for 100,000 units of its product for next year. Assume...
The Bridget Company has budgeted sales for 100,000 units of its product for next year. Assume Bridget begins the year with 40,000 units of finished product, but budgets ending inventory to be only 10,000 finished units. a. Compute the total budgeted units of production required for next year. b. If each unit takes three pounds of raw materials to make, and we now have 5,000 pounds of raw material on hand but want to end with 8,000 pounds, how many...
The Bridget Company has budgeted sales for 100,000 units of its product for next year. Assume...
The Bridget Company has budgeted sales for 100,000 units of its product for next year. Assume Bridget begins the year with 40,000 units of finished product, but budgets ending inventory to be only 10,000 finished units. a. Compute the total budgeted units of production required for next year. b. If each unit takes three pounds of raw materials to make, and we now have 5,000 pounds of raw material on hand but want to end with 8,000 pounds, how many...
3. Troy Corporation has the following budgeted sales for the selected four-month period: Month Unit Sales...
3. Troy Corporation has the following budgeted sales for the selected four-month period: Month Unit Sales October 40,000 November 70,000 December 50,000 January 60,000 There were 14,000 units of finished goods in inventory at the beginning of October. Plans are to have an inventory of finished product equal to 25 percent of the unit sales for the next month. Five pounds of a single raw material are required for each unit produced. Each pound of material costs $10. Plans are...
The following information has been projected for Stack Inc. for June: Sales 70,000 units Finished Goods...
The following information has been projected for Stack Inc. for June: Sales 70,000 units Finished Goods Beginning Inventory 4,000 units Finished Goods Ending Inventory 6,000 units The selling price is $45 per unit. Each unit requires 5 pounds of material which costs $5 per pound. The beginning inventory of raw materials is 15,000 pounds. The company wants to have 7,000 pounds of material in inventory at the end of June. Determine the budgeted material purchases (in $) for June? Options:...
ABC Company’s budgeted sales for June, July, and August are 12,400, 16,400, and 14,400 units, respectively....
ABC Company’s budgeted sales for June, July, and August are 12,400, 16,400, and 14,400 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 3,720 units. 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. Required: Calculate the number of pounds of raw material to be...
ABC Company’s budgeted sales for June, July, and August are 15,600, 19,600, and 17,600 units, respectively....
ABC Company’s budgeted sales for June, July, and August are 15,600, 19,600, and 17,600 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 4,680 units. 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. Required: Calculate the number of pounds of raw material to be...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT