J Co makes a component M which uses 3 kg of raw material X. The opening inventory at the start of next year is expected to be as follows. Opening inventory of raw material X 5,000 kg @ $4 Opening inventory of component M 2,000 units Sales of component M for the year are budgeted at 48,000 units. Production and sales are budgeted to occur evenly throughout the year. Closing inventory at the end of the year is budgeted as follows. Closing inventory of raw material X One month's worth of production Closing inventory of component M Two months' worth of sales   (c) What is the material X purchases budget for the year in kg?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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J Co makes a component M which uses 3 kg of raw material X. The opening inventory at the start of

next year is expected to be as follows.

Opening inventory of raw material X 5,000 kg @ $4

Opening inventory of component M 2,000 units

Sales of component M for the year are budgeted at 48,000 units. Production and sales are budgeted to

occur evenly throughout the year.

Closing inventory at the end of the year is budgeted as follows.

Closing inventory of raw material X One month's worth of production

Closing inventory of component M Two months' worth of sales

 

(c) What is the material X purchases budget for the year in kg?

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