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An examination of Long Corporation’s budget for June revealed the following info

ID: 2562718 • Letter: A

Question

An examination of Long Corporation’s budget for June revealed the following information:

Budgeted balance of raw materials, June 1: 46,000 units

Budgeted balance of raw materials, June 30: 51,000 units

Budgeted purchases of raw materials during June: 185,000 units

Long’s finished product requires four units of raw materials. On the basis of this information, how many units of finished products are expected to be manufactured during June?

70,500

47,500

57,750

Some other amount

45,000

A.

70,500

B.

47,500

C.

57,750

D.

Some other amount

E.

45,000

Explanation / Answer

Answer Is E. 45,000

Explanation:

A. Budgeted balance of raw materials, June 1: 46,000 units

B. Budgeted purchases of raw materials during June: 185,000 units

C. Budgeted balance of raw materials, June 30: 51,000 units

D. Budgeted raw materials available for manufacture during June is 180,000 units ( 46,000+185,000-51,000)

E. Finished products are expected to be manufactured during June os 45,000 units ( 180,000 units /4 units)

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