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Junker Corp. budgets its monthly production of doohickeys for the first four months of the year as follows: January 32,500 units; February 38,500 units; March
Junker Corp. budgets its monthly production of doohickeys for the first four months of the year as follows: January 32,500 units; February 38,500 units; March 39,750 units; April 38,750 units.
Each doohickey requires 5 pounds of gunk. Gunk costs $0.50/pound.
The companys policy is ending inventory of raw materials each month must be 20% of the following months production needs.
Prepare a materials purchase budget for the Jan-Mar quarter in pounds of gunk and $.
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