Wynn, Inc. manufactures beanies. The budgeted units to be produced and sold are below: August September Expected Production 3,500 2,800 Budgeted cost of purchases Expected Sales $ 2,900 It takes 18 yards of yarn to produce a beanie. The company's policy is to maintain yarn at the end of each month equal to 5% of next month's production needs and to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated production needs. The cost of yarn is $0.20 a yard. At August 1, 3,150 yards of yarn were on hand. Compute the budgeted cost of purchases. 3,900

Wynn, Inc. manufactures beanies. The budgeted units to be produced and sold are below: August September Expected Production 3,500 2,800 Budgeted cost of purchases Expected Sales $ 2,900 It takes 18 yards of yarn to produce a beanie. The company's policy is to maintain yarn at the end of each month equal to 5% of next month's production needs and to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated production needs. The cost of yarn is $0.20 a yard. At August 1, 3,150 yards of yarn were on hand. Compute the budgeted cost of purchases. 3,900

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...

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