Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On September 30 of Year 1, JayBob Company had raw materials inventory of 5,000 pounds. Starting in October, JayBob intends to have an inventory policy

On September 30 of Year 1, JayBob Company had raw materials inventory of 5,000 pounds. Starting in October, JayBob intends to have an inventory policy of maintaining ending raw materials inventory at the end of every month equal to the next ONE months production needs. For example, ending inventory at the end of October should be equal to forecasted raw materials needs for November production. Four pounds of raw materials are needed in the production of one finished unit. Forecasted PRODUCTION for the months October, Year 1 through December, Year 1 is as follows. October 4,300 units November 1,000 units December 700 units What is the amount of budgeted RAW MATERIALS PURCHASES for October?

17,000 pounds

17,200 pounds

16,200 pounds

24,000 pounds

19,000 pounds

21,200 pounds

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions