Company B would need 2 pounds per unit for producing 60 units of its Product X for the month of June. There is 10 pounds of material currently available in its inventory and its policy is to maintain inventory at the end enough for producing 15 units of its product. How many pounds of material is budgeted to be purchased for the month of June? a. 120 pounds b. 30 pounds c. 150 pounds d. 140 pounds

Company B would need 2 pounds per unit for producing 60 units of its Product X for the month of June. There is 10 pounds of material currently available in its inventory and its policy is to maintain inventory at the end enough for producing 15 units of its product. How many pounds of material is budgeted to be purchased for the month of June? a. 120 pounds b. 30 pounds c. 150 pounds d. 140 pounds

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?
The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.
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