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Bunny s Warehouse is a manufacturer that makes and sells carrot holders. The following information pertains to 2 0 2 2 . Budgeted monthly sales
Bunnys Warehouse is a manufacturer that makes and sells carrot holders. The following information
pertains to
Budgeted monthly sales in units:
August
September
October
November
Finished Goods inventory, August: units
Workinprocess inventory, August:
Raw Materials inventory, August: kg
The company has the following ending inventory policies:
Ending Finished Goods inventory each month is required to be of next months sales.
Ending Raw Materials inventory is required to be of next months production needs.
Producing one carrot holder requires kg of the raw materials,
Raw materials are purchased at $kg This price is not expected to change in
Purchases of materials are paid in the month purchased and in the following month.
Each carrot holder is sold for $ All sales are made on credit and customers pay in the
month of sale; in the month following. The remaining is uncollectable.
Required:
Determine the companys expected October cash disbursement for material purchases
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