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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?
Classify each of the following business activities as an operating, an investing, or a financing activity.
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The equipment has an estimated useful life of 7 years, Make the journal entries, that Bridgeport should record on December 31, 2021
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