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Concord Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecasted sales, Concord has developed the following budgeted production for the coming year. 1st Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Next Year Forecasted production (gallons) 5,500 8,000 9,500 13,500 6,000 Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Concord $0.25. An ounce of CA38 costs the company $0.25. Concord's inventory policy requires ending inventory equal to 30% of the next quarter's production needs. At the beginning of the year, Concord expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on hand. Prepare Concord's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, eg. 0.35.) 2nd Quarter 3rd Quarter 1st Quarter

Concord Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecasted sales, Concord has developed the following budgeted production for the coming year. 1st Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Next Year Forecasted production (gallons) 5,500 8,000 9,500 13,500 6,000 Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Concord $0.25. An ounce of CA38 costs the company $0.25. Concord's inventory policy requires ending inventory equal to 30% of the next quarter's production needs. At the beginning of the year, Concord expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on hand. Prepare Concord's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, eg. 0.35.) 2nd Quarter 3rd Quarter 1st Quarter

FINANCIAL ACCOUNTING
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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View Policies Current Attempt in Progress Concord Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecasted sales, Concord has developed the following budgeted production for the coming year. 1st Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Next Year Forecasted production (gallons) 5,500 8,000 9,500 13,500 6,000 Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Concord $0.25. An ounce of CA38 costs the company $0.25. Concord's inventory policy requires ending inventory equal to 30% of the next quarter's production needs. At the beginning of the year, Concord expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on hand. Prepare Concord's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, e.g. 0.35.) 2nd Quarter 3rd Quarter 1st Quarter
Transcribed Image Text:View Policies Current Attempt in Progress Concord Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecasted sales, Concord has developed the following budgeted production for the coming year. 1st Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Next Year Forecasted production (gallons) 5,500 8,000 9,500 13,500 6,000 Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Concord $0.25. An ounce of CA38 costs the company $0.25. Concord's inventory policy requires ending inventory equal to 30% of the next quarter's production needs. At the beginning of the year, Concord expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on hand. Prepare Concord's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, e.g. 0.35.) 2nd Quarter 3rd Quarter 1st Quarter
Prepare Concord's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, e.g. 0.35.) 2nd Quarter 3rd Quarter 4th Quarter Annual %$4 $4 2$ 24 $4 2$ 24 eTextbook and Media
Transcribed Image Text:Prepare Concord's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, e.g. 0.35.) 2nd Quarter 3rd Quarter 4th Quarter Annual %$4 $4 2$ 24 $4 2$ 24 eTextbook and Media
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The management requires to made a purchase budget in advance for identifying the estimated cost suppose to be incurred to purchase the material.

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