Quarter Sales in Units Production in Units The Tabby Company has budgeted production for next year as follows: First 14,000 10,000 Second 12,000 12,000 Third 14,000 16,000 Fourth 16,000 14,000 Four kilograms of raw materials are required for each unit produced. At the start of the year, raw materials on hand total 5,000 kilograms. The raw materials inventory at the end of each quarter should equal 20% of the next quarter's production needs. What would be the budgeted purchases of raw materials in the third quarter? A) 65,600 kilograms. 56,800 kilograms. B) C) 62,400 kilograms. D) 63,200 kilograms.

Quarter Sales in Units Production in Units The Tabby Company has budgeted production for next year as follows: First 14,000 10,000 Second 12,000 12,000 Third 14,000 16,000 Fourth 16,000 14,000 Four kilograms of raw materials are required for each unit produced. At the start of the year, raw materials on hand total 5,000 kilograms. The raw materials inventory at the end of each quarter should equal 20% of the next quarter's production needs. What would be the budgeted purchases of raw materials in the third quarter? A) 65,600 kilograms. 56,800 kilograms. B) C) 62,400 kilograms. D) 63,200 kilograms.

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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