The Steele Corporation has budgeted production for next year as follows: Production in units Quarter O 63,200 pounds 62,400 pounds 56,800 pounds First 10,000 Second 12,000 Third 16,000 Fourth 14,000 Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw mater inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be:

The Steele Corporation has budgeted production for next year as follows: Production in units Quarter O 63,200 pounds 62,400 pounds 56,800 pounds First 10,000 Second 12,000 Third 16,000 Fourth 14,000 Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw mater inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be:

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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