The Tobler Company has budgeted production for next year as follows: Quarter ............... First Second Third Fourth Production in units ... 10 000 12 000 16 000 14 000 Four kilos of raw materials are required for each unit produced. Raw materials on hand at the start of the year totals 4 000 kg. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be: A. 63 200 kg. B. 56 800 kg. C. 62 400 kg. D. 50 400 kg
The Tobler Company has budgeted production for next year as follows: Quarter ............... First Second Third Fourth Production in units ... 10 000 12 000 16 000 14 000 Four kilos of raw materials are required for each unit produced. Raw materials on hand at the start of the year totals 4 000 kg. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be: A. 63 200 kg. B. 56 800 kg. C. 62 400 kg. D. 50 400 kg
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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The Tobler Company has budgeted production for next year as follows:
Quarter ............... First Second Third Fourth
Production in units ... 10 000 12 000 16 000 14 000
Four kilos of raw materials are required for each unit produced. Raw materials on hand at the start of the year totals 4 000 kg. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be:
A. |
63 200 kg. |
|
B. |
56 800 kg. |
|
C. |
62 400 kg. |
|
D. |
50 400 kg |
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