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Let's utilize a simple example to understand the above three calculation blocks; and thus understand the Raw Materials Budget. This example is for one quarter.
Let's utilize a simple example to understand the above three calculation blocks; and thus understand the Raw Materials Budget. This example is for one quarter. There is just one Raw Material item used in the production of the Finished Units, and that Raw Material item's unit-of- measure is pounds. This data is not for My Armorthis data is for Simple Company. (the amounts are small to make the math easy to see) > Finished Units to Produce during the quarter ........... ..... 100 units Pounds of Raw Material Required per Finished Unit ......... 2 pounds per unit Pounds of Raw Material Needed in Ending Raw Materials Inventory ........ 25 pounds Pounds of Raw Material in Beginning Raw Materials Inventory................ 15 pounds Cost of Raw Material per Pound .......... .................. $3 per pound Multiple Choice Questions Budget par la comment, what would alwentors were 30 rather thanswer. C 1. Using the data in the simple example on Pg. 1 of the Raw Materials Budget.pdf document, what would be Total Cost of Raw Material Purchases if Pounds of Raw Material Needed in Ending Raw Materials Inventory were 30 rather than 25? A. $635 B. $625 C. $645 D. $615
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