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The production of product Q has been budgeted for 200,000 units for the current

ID: 2459941 • Letter: T

Question

The production of product Q has been budgeted for 200,000 units for the current month. One unit of product Q requires 2 pounds of raw materials. The projected materials beginning inventory is 2,000 pounds, and the projected materials ending inventory is 10,000 pounds. The cost of materials is $4.00 per pound.

The budgeted cost of materials purchases for the current month is:

The production of product Q has been budgeted for 200,000 units for the current month. One unit of product Q requires 2 pounds of raw materials. The projected materials beginning inventory is 2,000 pounds, and the projected materials ending inventory is 10,000 pounds. The cost of materials is $4.00 per pound.

The budgeted cost of materials purchases for the current month is:

Explanation / Answer

The budgeted cost of materials purchases for the current month is:=The production of product Q has been budgeted for 200,000 units for the current month*2+ending inventory is 10,000 pounds-beginning inventory is 2,000 pounds=408,000 pounds