NUBD Company manufactures a single product. It keeps its inventory of finished goods at 75% of the coming month’s budgeted sales, inventory of raw materials at 50% of the coming month’s budgeted production needs. Each unit of product requires two kilos of materials. The production budget is in units: May 10,000; June 12,000; July 13,000; August 16,000. Raw materials purchases (in kilos) in June would be A. 15,250 B. 25,500 C. 28,000 D. 30,000
NUBD Company manufactures a single product. It keeps its inventory of finished goods at 75% of the coming month’s budgeted sales, inventory of raw materials at 50% of the coming month’s budgeted production needs. Each unit of product requires two kilos of materials. The production budget is in units: May 10,000; June 12,000; July 13,000; August 16,000. Raw materials purchases (in kilos) in June would be A. 15,250 B. 25,500 C. 28,000 D. 30,000
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 3CMA: Ming Company has budgeted sales at 6,300 units for July, and desires to have 590 good units on hand...
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NUBD Company manufactures a single product. It keeps its inventory of finished goods at 75% of the coming month’s budgeted sales, inventory of raw materials at 50% of the coming month’s budgeted production needs. Each unit of product requires two kilos of materials. The production budget is in units: May 10,000; June 12,000; July 13,000; August 16,000. Raw materials purchases (in kilos) in June would be
A. 15,250
B. 25,500
C. 28,000
D. 30,000
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