What would the budgeted material purchases in april

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Question - Jason sales budget shows monthly sales for the next four months as follows:

Month

March

April

May

June

Sales units

10,000

14,000

12,000

16,000

Each unit requires 4 kg of material costing $6 per kg.

Company policy is to have a finished goods inventory at the end of each month equal to 25% of the next month's sales and closing inventory of materials to be equal to 40% of next month's production requirements.

Closing inventories of finished goods and materials at the end of February were 2,000 units and 20,000 kg respectively.

What would the budgeted material purchases in April be in kg?

Reference no: EM133147138

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