reasers corporation makes one product. Budget unit sales April may june july 840

Question

reasers corporation makes one product.

Budget unit sales     April                may            june               july

                                    8400               8700               12600         13100

each unit of finished goods require 4 pounds of raw materials, ending finished good inventory equals 10% of following month's sales. ending raw materials equal 40% of following month raw materials production needed. 50,600 of raw materials required for production in june, the budgeted raw materials purchases for May is closest to

56600

42065

71144

36360

Explanation / Answer

42,056 Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars April May June July Budgeted Unit Sale                   8,400.00              8,700.00            12,600.00            13,100.00 Ending inventory = 10% Next month sales                       870.00              1,260.00              1,310.00 Total units required                   9,270.00              9,960.00            13,910.00 Less Beginning Inventory = Ending of prev month                  870.00              1,260.00 Production in units              9,090.00            12,650.00 Raw material required per unit                      4.00                      4.00 Raw Material Requirement for prod            36,360.00            50,600.00 Ending Raw Materials = 50600*.40            20,240.00 Total Raw material needed            56,600.00 Beginning raw materials = 36360*.40            14,544.00 budgeted raw materials purchases            42,056.00

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