Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how would I determine how many kilograms of material will be budgeted for purchase for the month of April, as well as calculating the cost

how would I determine how many kilograms of material will be budgeted for purchase for the month of April, as well as calculating the cost of materials for April based on the following information:

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 29,000
July 25,000 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: James Jiambalvo

7th Edition

1119577721, 978-1119577720

More Books

Students also viewed these Accounting questions

Question

What reward will you give yourself when you achieve this?

Answered: 1 week ago