Yummy Foods expects to have 43,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company budgets the following production (in units) for April through July, inclusive: April 127,000 May 137,000 June 153,000 July 127,000 At the end of each month the firm desires its ending raw material inventory to be 10% of the next month's production needs. Each finished unit requires three pounds of raw materials.Yummy Foods’ budgeted purchases for raw materials (in pounds) during April should be:
Yummy Foods expects to have 43,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company budgets the following production (in units) for April through July, inclusive: April 127,000 May 137,000 June 153,000 July 127,000 At the end of each month the firm desires its ending raw material inventory to be 10% of the next month's production needs. Each finished unit requires three pounds of raw materials.Yummy Foods’ budgeted purchases for raw materials (in pounds) during April should be:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Yummy Foods expects to have 43,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company budgets the following production (in units) for April through July, inclusive:
| April | 127,000 |
|---|---|
| May | 137,000 |
| June | 153,000 |
| July | 127,000 |
At the end of each month the firm desires its ending raw material inventory to be 10% of the next month's production needs. Each finished unit requires three pounds of raw materials.
Yummy Foods’ budgeted purchases for raw materials (in pounds) during April should be:
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