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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.
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