2. Al Nebras Company has budgeted production for next year as follows: 1st Year Q1 30,000 Q2 40,000 Q3 50,000 Q4 60,000 Production in Units Four pounds of material X are required for each unit produced. The company has a policy of maintaining a stock of material X on hand at the end of each quarter equal to 20% of the next quarter's production needs for material X. A total of 8,000 pounds of material X are on hand to start the year. Budgeted purchases of material A for the third quarter would be: A. 52,000 pounds B. 192,000 pounds C. 208,000 pounds D. 216,000 pounds
2. Al Nebras Company has budgeted production for next year as follows: 1st Year Q1 30,000 Q2 40,000 Q3 50,000 Q4 60,000 Production in Units Four pounds of material X are required for each unit produced. The company has a policy of maintaining a stock of material X on hand at the end of each quarter equal to 20% of the next quarter's production needs for material X. A total of 8,000 pounds of material X are on hand to start the year. Budgeted purchases of material A for the third quarter would be: A. 52,000 pounds B. 192,000 pounds C. 208,000 pounds D. 216,000 pounds
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 3BE: Pasadena Candle Inc. budgeted production of 785,000 candles for January. Wax is required to produce...
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