https D Question 13 1 pts Company A is a manufacturer. The company anticipates h
ID: 2601405 • Letter: H
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https D Question 13 1 pts Company A is a manufacturer. The company anticipates having 7.000 finished units on hand at the beginning of the first quarter of 2010, For 2010, the company will require 20% of the following month's unit sales to be on hand at the end of each month. Unit sales for the manth of April are expected to be 25,000 and total unit sales for the second quarter are expected to be 70,000. The anticipated beginning and ending raw materials inventory levels for the first quarter of 2010 are 25.000 pounds and 20,000 pounds, respectively Each unit produced requires five pounds of raw material Each pound of raw material costs $2.00 from the supplier and the budgeted dollar amount of raw material purchases for the first quarter is $230,000. How many units are budgeted to be sold during the first quarter of 2010? 24.000 units O 26.000 units 27,000 units O 17.000 units 1 pts Question 14Explanation / Answer
Raw Material used in production = Opening Inventory + Purchases - Closing Inventory
= 25000 + 115000 - 20000 = 120,000 pounds
No of units produced (120,000/5) =24000units
= 7000 + 24000 - 5000 =26000 units
Therefore units sold during the month is 26000 units.
Raw Materials purchased 230,000 Cost of raw material per pound 2 No of pounds purchased (230,000/2) 115000Related Questions
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