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Please help. Got the answer wrong. Assume inat a company provaed the tonowing imiormation and assumptions Irom its master buageL Sales budget: Unit sales in
Please help. Got the answer wrong.
Assume inat a company provaed the tonowing imiormation and assumptions Irom its master buageL Sales budget: Unit sales in June, July, and August are 20,000,18,000, and 17,000 , respectively. The selling price per unit is $80. All sales are on account 20% of sales are collected in the month of sale and 80% are collected in the next month. Production budget The ending finished goods inventory is always 25% of next month's unit sales. Direct materials budget: Each unit of finished goods requires 3 pounds of raw material that cost $2.00 per pound. The ending raw materials inventory is always 30% of next month's production needs. 40% of raw material purchases are paid in the current and the remainder is paid in the following month. What is the cost of raw material purchases for June? Multiple Choice $113.850 $115,950 Multiple Choice $113,850 $115,950 $114,450 $112750 Step by Step Solution
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