production for the next six-month period: Lubriderm Corporation has the followin

Question

production for the next six-month period: Lubriderm Corporation has the following budgeted sales and Month June July August September October November Unit Produced 90,000 120,000 210,000 150,000 180,000 120,000 100,000 138,000 198,000 156,000 118,000 88,000 ive (5) pounds of materials are required for each unit produced. Each pound of material costs $8. Inventory levels for materials are equal to 30% of the material needs for the next month. Required: Prepare a purchases budget in pounds for July and August only

Explanation / Answer

July August Budgeted production 138000 198000 Pounds per unit 5 5 Total pounds for production 690000 990000 Add: Desired ending inventory 297000 234000 Total materials needed 987000 1224000 Less: Beginning inventory 207000 297000 Materials to be purchased 780000 927000 Cost per pound 8 8 Cost of Materials to be purchased 6240000 7416000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.