Question 4 (1.2 points) Retail Company has the following budgeted quarterly sale

Question

Question 4 (1.2 points) Retail Company has the following budgeted quarterly sales for the next year. 1st QTR- 3,000 units; 2nd QTR - 4,000 units; 3rd QTR-3,600 units; 4th QTR - 5,600 units. Each unit sells for $10. Beginning finished goods inventory for the 1st quarter was 500 units. The company wants to end each quarter with 25% of the sales for the next quarter. Calculate budgeted purchases (in units) for the second quarter. abs Do use any dollar signs or commas. For example, enter 18,000 as 18000 Save Question 5 (1.4 points) X Company has 2,000 pounds of raw material in its beginning inventory. Its production budget shows required production of 4,000 units in January and 5,000 units in February. Three pounds of raw materials are needed for each unit produced and the projected cost of the raw material is $6 per pound. Management wants to each every month with raw material equal to 20% of the materials needed for the next month's production. Compute the cost (in dollars) of raw materials needed to be purchased in January ab Do use any dollar signs or commas. For example, enter $18,000 as 18000 Save

Explanation / Answer

SOLUTION

Ending finished goods inventory = 25% of next quarter

= 25% * 3,600 = 900

Beginning finished goods inventory = Ending finished goods inventory of First quarter

= 25% * 4,000 = 1,000

2nd Quarter Budgeted sales 4,000 Add: Ending finished goods inventory 900* 4,900 Less: Beginning finished goods inventory (1,000)** Budgeted Purchases 3,900

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