Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below: January February March 70,000 80,000 142,400 151,600 158,800 ? Budgeted production (in units) Budgeted raw materials purchases (in pounds) Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. The company is expected to have 42,000 pounds of raw materials on hand on January 1. Budgeted production for February should be: Multiple Choice 80,600 units 80,000 units 103,400 units 74,000 units < Prev 2 of 20 Next >

Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below: January February March 70,000 80,000 142,400 151,600 158,800 ? Budgeted production (in units) Budgeted raw materials purchases (in pounds) Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. The company is expected to have 42,000 pounds of raw materials on hand on January 1. Budgeted production for February should be: Multiple Choice 80,600 units 80,000 units 103,400 units 74,000 units < Prev 2 of 20 Next >

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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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below:
Budgeted production (in units)
Budgeted raw materials purchases (in pounds)
Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to
30% of the following month's production needs. The company is expected to have 42,000 pounds of raw materials on hand on January 1. Budgeted
production for February should be:
Multiple Choice
80,600 units
80,000 units
103,400 units
74,000 units
4-
March
January February
?
80,000
151,600 158,800
70,000
142,400
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