ABC Company's budgeted sales for June, July, and August are 13,400, 17,400, and 15,400 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 4,020 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 purchased in June.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ABC Company's budgeted sales for June,
July, and August are 13,400, 17,400, and
15,400 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 4,020 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
purchased in June.
Transcribed Image Text:ABC Company's budgeted sales for June, July, and August are 13,400, 17,400, and 15,400 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 4,020 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 purchased in June.
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