Nashville Car Parts has 50,000 pounds of raw materials in inventory on February 1. The company plans to have 80,000 pounds of raw materials in inventory by February 28. The production requirements for February are estimated at 320,000 pounds. How many pounds of raw materials should be purchased in February? a. 300,000 pounds. b. 350,000 pounds. c. 400,000 pounds. d. 220,000 pounds.

Nashville Car Parts has 50,000 pounds of raw materials in inventory on February 1. The company plans to have 80,000 pounds of raw materials in inventory by February 28. The production requirements for February are estimated at 320,000 pounds. How many pounds of raw materials should be purchased in February? a. 300,000 pounds. b. 350,000 pounds. c. 400,000 pounds. d. 220,000 pounds.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...

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Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.
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