Production of Product B has been budgeted at 2,000, 1,800, 1,600, and 1,700 unit
ID: 2407951 • Letter: P
Question
Production of Product B has been budgeted at 2,000, 1,800, 1,600, and 1,700 units for October, November, December, and January, respectively. One unit of Product B requires 2 pounds of raw material at $5 per pound. Required ending inventory for raw materials is 25% of the next month's demand. Raw material inventory at 9/30 is 1,000 pounds. 70% of material purchases is paid in the month of purchase, with the remaining 30% paid in the month after purchase. The A/P balance at 9/30 is $5,400. How many pounds of material is budgeted to be purchased during the last quarter of the year?
Budgeted payment of A/P during the last quarter is?
$58,650
Budgeted ending balance of A/P at 12/31 is
a.9,950Explanation / Answer
Pounds of material budgeted to be produced is below.
Option C is correct
2)Budgeted Payment of AP during last quarter
Option C is correct.
3) Budgeted ending balance of A/P at 12/31 = $4875.
Option B is correct
October November December January Total(Quarter) Pounds Budgeted for production 4000 3600 3200 3400 10800 Ending Inventory (25% of next month Budgeted Pounds) 900 800 850 2550 Less Beginning Inventory 1000 900 800 2700 Pounds to be produced 3900 3500 3250 10650