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ABC company is planning for the quarter ended, June 30, as follows: Month Budgeted Sales In units Budgeted Production In units April 20,000 26,000 May
ABC company is planning for the quarter ended, June 30, as follows: Month Budgeted Sales In units Budgeted Production In units April 20,000 26,000 May 50,000 46,000 June 30,000 July 25,000 29,000 20,000 Their product requires 7 kilograms of material per unit at a cost of $.60 per kilogram. The desired ending materials inventory is the amount of material required to produce 10% of the next month's production. At the beginning of April, ABC had 12,200 kilograms of material on hand. Instructions Determine how many kilograms of material will be budgeted for purchase for the month of April. Calculate the cost of materials for April.
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