Below is the budgeted production and sales data for XYZ Company: Month Sales (units) Production (units) April 25,000 28,000 May 30,000 29,000 June 27,000 26,000 Each unit requires 2 pounds of raw material. The company maintains an ending inventory of materials equal to 25% of the next month's production needs. Calculate the budgeted purchases of raw materials for May.

Below is the budgeted production and sales data for XYZ Company: Month Sales (units) Production (units) April 25,000 28,000 May 30,000 29,000 June 27,000 26,000 Each unit requires 2 pounds of raw material. The company maintains an ending inventory of materials equal to 25% of the next month's production needs. Calculate the budgeted purchases of raw materials for May.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 2E: The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units....

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