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

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
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
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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