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

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

Section: Chapter Questions

Problem 1Q

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Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. Five units of raw material are required to produce each unit of finished product. Raw material Work in process Finished goods January 1 December 31 36,000 17,000 98,000 51,000 17,000 62,000 Required: 1. If Bodin Company plans to sell 472,000 units during the year, compute the number of units the firm would have to manufacture during the year. 2. If 509,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased. 1. Required production in units 2. Raw material purchases in units cBook Pro 6) U G K C V. N
n Fraser Company has forecast purchases on account to be $210,000 in March, $270,000 in April, $320,000 in May, and $390,000 in June. Seventy percent of purchases are paid for in the month of purchase, the remaining thirty percent are paid in the following month. What are budgeted cash payments for April? bus page O a. $252,000 O b. $285,000 O c. $126,000 O d. $159,000 Type here to search X £ 3 E 4 D R O Bl % 5 F J JC U IL 20 # 6 & DU JU G H B U N 8 H K Time left 0:35: M Next page 28°C Ma
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