Saphire Company budgeted the following production in units for the second quarter of the year:
April 45,000
May 38,000
June 42,000
Each unit requires one pound of raw material. Saphire's policy is to have 30% of the following month's production needs for materials in inventory.
A) Raw materials purchases budgeted for May in pounds equal:
a) 39,200
b) 45,600
c) 50,600
d) 42,900
B) Desired beginning inventory for June in pounds equals:
a) 9,575
b) 12,600
c) 10,500
d) 11,400
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Ответ:
Instructions are below.
Explanation:
Giving the following information:
Sales:
April 45,000
May 38,000
June 42,000
Each unit requires one pound of raw material. Saphire's policy is to have 30% of the following month's production needs for materials in inventory.
A) Budgeted production= sales + desired ending inventory - beginning inventory
Budgeted production:
Sales=38,000
Ending inventory= 42,000*0.3= 12,600
Beginning inventory= 38,000*0.3= (11,400)
Total= 39,200
B) Desired beginning inventory= budgeted sales*30%
Beginning inventory= 42,000*0.3= 12,600
Ответ:
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