Charm Enterprises' production budget shows the following units to be produced for the coming three months: O 11,352 oz. 11,520 oz. 7,448 oz. 15,384 oz. April 2,560 Units to be produced A finished unit requires four ounces of a key direct material. The March 31 Raw Materials inventory has 2,560 ounces (oz.) of the material. Each month's ending Raw Materials inventory should be 35% of the following month's production needs. The materials to be purchased during May should be: 7,616 oz. May 2,880 June 2,760

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Charm Enterprises' production budget shows the following units to be produced for the coming three months:
11,352 oz.
O 11,520 oz.
7,448 oz.
April
2,560
Units to be produced
A finished unit requires four ounces of a key direct material. The March 31 Raw Materials inventory has 2,560 ounces (oz.) of the material. Each month's ending Raw Materials
inventory should be 35% of the following month's production needs. The materials to be purchased during May should be:
O 15,384 oz.
7,616 oz.
May
2,880
June
2,760
Transcribed Image Text:Charm Enterprises' production budget shows the following units to be produced for the coming three months: 11,352 oz. O 11,520 oz. 7,448 oz. April 2,560 Units to be produced A finished unit requires four ounces of a key direct material. The March 31 Raw Materials inventory has 2,560 ounces (oz.) of the material. Each month's ending Raw Materials inventory should be 35% of the following month's production needs. The materials to be purchased during May should be: O 15,384 oz. 7,616 oz. May 2,880 June 2,760
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