Assume that a company expects to produce 11,200, 12,200, and 14,200 units of finished goods in January, February, and March, respectively. Each finished goods requires 4 pounds of raw material and each pound of raw material costs $4.00. The company always maintains an ending raw mate inventory equal to 30% of next month's production needs. What is the amount of expected raw materials purchases for February? Multiple Choice $167,360 О $195,200 о $153,600 О $204,800

Assume that a company expects to produce 11,200, 12,200, and 14,200 units of finished goods in January, February, and March, respectively. Each finished goods requires 4 pounds of raw material and each pound of raw material costs $4.00. The company always maintains an ending raw mate inventory equal to 30% of next month's production needs. What is the amount of expected raw materials purchases for February? Multiple Choice $167,360 О $195,200 о $153,600 О $204,800

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...

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Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The companys policy is to have enough material on hand to equal 15% of next months production needs and to maintain a finished goods inventory equal to 20% of the next months production needs. What is the budgeted cost of purchases for March?
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