Assume that a company expects to produce 10,600, 11,600, and 13,600 units of finished goods in January, February, and March, respectively. Each unit of finished goods requires 3 pounds of raw material and each pound of raw material costs $2.50. The company always maintains an ending raw materials inventory equal to 20% of next month’s production needs. What is the amount of expected raw materials purchases for February? Multiple Choice $90,000 $54,000 $86,400 $43,080

Assume that a company expects to produce 10,600, 11,600, and 13,600 units of finished goods in January, February, and March, respectively. Each unit of finished goods requires 3 pounds of raw material and each pound of raw material costs $2.50. The company always maintains an ending raw materials inventory equal to 20% of next month’s production needs. What is the amount of expected raw materials purchases for February? Multiple Choice $90,000 $54,000 $86,400 $43,080

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...

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Item 14

Time Remaining 43 minutes 55 seconds

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Multiple Choice

$90,000
$54,000
$86,400
$43,080

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