ABC Company's budgeted sales for June, July, and August are 12,800, 16,800, and 14,800 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 3,840 units. Each unit that ABC Company produces uses 2 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 purchased in June. Number of pounds
ABC Company's budgeted sales for June, July, and August are 12,800, 16,800, and 14,800 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 3,840 units. Each unit that ABC Company produces uses 2 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 purchased in June. Number of pounds
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 3CMA: Ming Company has budgeted sales at 6,300 units for July, and desires to have 590 good units on hand...
Related questions
Question
A9
![ABC Company's budgeted sales for June, July, and August are 12,800, 16,800, and 14,800 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 3,840
units. Each unit that ABC Company produces uses 2 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 purchased in June.
Number of pounds](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44b2055c-81ca-4414-bbf6-7602f88db7b8%2F4c530fb7-d9d3-4b60-9017-63c1b7affeed%2Fn4wqu1j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ABC Company's budgeted sales for June, July, and August are 12,800, 16,800, and 14,800 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 3,840
units. Each unit that ABC Company produces uses 2 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 purchased in June.
Number of pounds
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