Solution-Determine the budgeted cost of raw material

Determine the budgeted cost of raw material purchases

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Question - Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:

a. Budgeted unit sales for April, May, June, and July are 7,500, 11,900, 10,800, and 14,800 units, respectively. All sales are on credit.

b. The ending finished goods inventory equals 30% of the following month's sales.

c. The ending raw materials inventory equals 30% of the following month's raw materials production needs. Each unit of finished goods requires 6 pounds of raw materials. The raw materials cost $5.00 per pound.

If 72,000 pounds of raw materials are required for production in June, then determine the budgeted cost of raw material purchases for May?

Reference no: EM133031006

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Determine the budgeted cost of raw material purchases

Reference no: EM133031006

Reference no: EM133031006

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