A firm manufactures one product and has budgeted information as follows: Units Produced Jan. 40 Feb. 50 March 30 April 40 Each product requires 3 direct material. The desired ending inventory of raw materials is 25% of the next month's production. There is no beginning inventory of raw material in January. Budgeted purchases of direct materials in February would be 0.90 0135 0165 045
A firm manufactures one product and has budgeted information as follows: Units Produced Jan. 40 Feb. 50 March 30 April 40 Each product requires 3 direct material. The desired ending inventory of raw materials is 25% of the next month's production. There is no beginning inventory of raw material in January. Budgeted purchases of direct materials in February would be 0.90 0135 0165 045
Chapter7: Budgeting
Section: Chapter Questions
Problem 4EB: Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February,...
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![A firm manufactures one product and has budgeted information as follows:
Units Produced
Jan.
40
Feb. 50
March 30
April 40
Each product requires 3 direct material. The desired ending inventory of raw materials is 25% of the next month's production.
There is no beginning inventory of raw material in January.
Budgeted purchases of direct materials in February would be
0⁹0
0135
0165
045](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bae3f7d-5c28-420c-9bea-7f0e29e2f1ab%2Fadf0a41e-f920-4003-9d68-d62a7f7a59e0%2Ftp34ou5_processed.png&w=3840&q=75)
Transcribed Image Text:A firm manufactures one product and has budgeted information as follows:
Units Produced
Jan.
40
Feb. 50
March 30
April 40
Each product requires 3 direct material. The desired ending inventory of raw materials is 25% of the next month's production.
There is no beginning inventory of raw material in January.
Budgeted purchases of direct materials in February would be
0⁹0
0135
0165
045
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