Purchases of raw materials

Reference no: EM13127064

The following are budgeted data:

Sales in units
Month1 15,000
Month2 20,000
Month3 18,000

Production in units
Month1 16,000
Month2 22,000
Month3 15,000

One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. At the beginning of Month 1, 3,200 lbs. of materials were on hand. Purchases of raw materials for Month 2 would be budgeted to be:

Reference no: EM13127064

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