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1.) The following are budgeted data:
| January | February | March | |||||||
| Sales in units | 16,300 | 22,600 | 19,300 | ||||||
| Production in units | 19,300 | 20,300 | 17,300 | ||||||
One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 25% of the following month’s production needs. Purchases of raw materials for February would be budgeted to be:
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2.)
Marst Corporation’s budgeted production in units and budgeted raw materials purchases over the next three months are given below:
| January | February | March | |||||||
| Budgeted production (in units) | 71,500 | ? | 87,500 | ||||||
| Budgeted raw materials purchases (in pounds) | 149,900 | 174,100 | 166,300 | ||||||
Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 25% of the following month’s production needs. The company is expected to have 45,000 pounds of raw materials on hand on January 1. Budgeted production for February should be:
Expert Answer
| As multiple questions have been asked, only can be answered at a time. | |||
| 1 | |||
| Production in units | 20300 | ||
| Raw material per unit | 1 | ||
| Raw material needed for production | 20300 | ||
| Add: Ending raw material inventory | 4325 | ||
| Less: Beginning raw material inventory | 5075 | ||
| Purchases of raw materials for February | 19550 | ||
