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

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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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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