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Contract Manufacturing has budgeted production for next year as follows: Production in units: 1st Quarter: 20,000 2nd Quarter: 24,000 3rd Quarter: 32,000 4th Quarter: 28,000
Contract Manufacturing has budgeted production for next year as follows: Production in units: 1st Quarter: 20,000 2nd Quarter: 24,000 3rd Quarter: 32,000 4th Quarter: 28,000 Five kg of raw materials are required for each unit produced. Raw materials on hand at the start of the year totals 5,000 kg. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the second quarter would be:
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124,000 kg.
160,000 kg.
116,000 kg.
24,800 kg.
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