The following are budgeted data: January February March 20,000 18,000 Sales in Units 15,000 Production in Units 18,000 19,000 16,000 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Purchases of raw materials for February would be budgeted to be: a. b. C. d. 19,600 pounds 20,400 pounds 18,600 pounds 18,400 pounds

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following are budgeted data:
Sales in Units
Production in Units
One pound of material is required for each finished unit. The inventory of materials at the end of
each month should equal 20% of the following month's production needs. Purchases of raw materials
for February would be budgeted to be:
a.
b.
January February March
15,000 20,000
18,000
18,000 19,000
16,000
C.
d.
19,600 pounds
20,400 pounds
18,600 pounds
18,400 pounds
Transcribed Image Text:The following are budgeted data: Sales in Units Production in Units One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Purchases of raw materials for February would be budgeted to be: a. b. January February March 15,000 20,000 18,000 18,000 19,000 16,000 C. d. 19,600 pounds 20,400 pounds 18,600 pounds 18,400 pounds
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