Assume a company's sales budget for April and May is 44,000 units and 46,000 units, respectively. Its production budget for the same two months is 41,000 units and 42.000 units, respectively. Each unit of finished goöds fequired siways maintalns raw materials Inventory equal to 20% of the following months production needs Also assume the company pays $2.65 per pound of raw material. It always pays for 50% of its raw material purchases in the month disbursements for raw materials purchases would be shown in the company's cash budget for Apri? purchase and the rematnder in the following month. The accounts payable balance on March 31 s $144,000. How much cosh Multiple Choice $307770 $315,770 $312770 $306770

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume a company's sales budget for April and May Is 44,000 units and 46,000 units, respectively. Its production budget for the same two months is 41.000 units and 42,000 units, respectively. Each unit of finished goods required 3 pounds of raw materials. The company
always malntalns raw materlals Inventory equal to 20% of the followIng months production needs.
Also assume the company pays $2.65 per pound of raw materlal. It always pays for 50% of Its raw materlal purchases In the month of purchase and the remalnder In the following month. The accounts payable balance on March 315t Is $144,000, How much cash
disbursements for raw materlals purchases would be shown In the company's cash budget for April?
Multiple Choice
$307.770
$315.770
$312.770
$306.770
Transcribed Image Text:Assume a company's sales budget for April and May Is 44,000 units and 46,000 units, respectively. Its production budget for the same two months is 41.000 units and 42,000 units, respectively. Each unit of finished goods required 3 pounds of raw materials. The company always malntalns raw materlals Inventory equal to 20% of the followIng months production needs. Also assume the company pays $2.65 per pound of raw materlal. It always pays for 50% of Its raw materlal purchases In the month of purchase and the remalnder In the following month. The accounts payable balance on March 315t Is $144,000, How much cash disbursements for raw materlals purchases would be shown In the company's cash budget for April? Multiple Choice $307.770 $315.770 $312.770 $306.770
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