ABC Company's budgeted sales for June, July, and August are 12,600, 16,600, and 14,600 units, respectively. ABC requires 25% of the next month's budgeted unit sales as finished goods Inventory each month. Budgeted ending finished goods Inventory for May Is 3,150 units. Each unit that ABC Company produces uses 4 pounds of raw material. ABC requires 20% of the next month's budgeted production as raw material inventory each month. Required: Calculate the number of pounds of raw material to be purchased in June. Number of pounds

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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ABC Company's budgeted sales for June, July, and August are 12,600, 16,600, and 14,600 units, respectively. ABC requires 25% of the
next month's budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods Inventory for May Is 3,150
units. Each unit that ABC Company produces uses 4 pounds of raw material. ABC requires 20% of the next month's budgeted
production as raw material inventory each month.
Required:
Calculate the number of pounds of raw material to be purchased in June.
Number of pounds
Transcribed Image Text:ABC Company's budgeted sales for June, July, and August are 12,600, 16,600, and 14,600 units, respectively. ABC requires 25% of the next month's budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods Inventory for May Is 3,150 units. Each unit that ABC Company produces uses 4 pounds of raw material. ABC requires 20% of the next month's budgeted production as raw material inventory each month. Required: Calculate the number of pounds of raw material to be purchased in June. Number of pounds
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