The following budgeted information is provided: Month 1 2 3 Sales in units 26,000 31,000 29,000 Production in units 27,000 33,000 26,000 One pound of materials 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. At the beginning of Month 1, there were 6,750 pounds of materials on hand. Purchases of raw materials for Month 1 would be (in pounds): Multiple Choice 36,000. 41,750. 28,500. 33,000.

The following budgeted information is provided: Month 1 2 3 Sales in units 26,000 31,000 29,000 Production in units 27,000 33,000 26,000 One pound of materials 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. At the beginning of Month 1, there were 6,750 pounds of materials on hand. Purchases of raw materials for Month 1 would be (in pounds): Multiple Choice 36,000. 41,750. 28,500. 33,000.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 2E: The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units....

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