Zhang Industries budgets production of 450 units in June and 460 units in July. Each finished unit requires 5 pounds (lbs.) of raw material K, which costs $6 per pound. Each month's ending inventory of raw materials should be 20% of the following month's budgeted production. The June 1 raw materials inventory has 450 pounds of raw material K. Compute the budgeted purchases for raw material Kin

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Zhang Industries budgets production of
450 units in June and 460 units in July.
Each finished unit requires 5 pounds (lbs.)
of raw material K, which costs $6 per
pound. Each month's ending inventory of
raw materials should be 20% of the
following month's budgeted production.
The June 1 raw materials inventory has 450
pounds of raw material K. Compute the
budgeted purchases for raw material K in
pounds for June.
Multiple Choice
2,250 lbs.
2,300 lbs.
2,260 lbs.
2,270 lbs.
1,850 lbs.
Transcribed Image Text:Zhang Industries budgets production of 450 units in June and 460 units in July. Each finished unit requires 5 pounds (lbs.) of raw material K, which costs $6 per pound. Each month's ending inventory of raw materials should be 20% of the following month's budgeted production. The June 1 raw materials inventory has 450 pounds of raw material K. Compute the budgeted purchases for raw material K in pounds for June. Multiple Choice 2,250 lbs. 2,300 lbs. 2,260 lbs. 2,270 lbs. 1,850 lbs.
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