Question
Prestwich Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units 86,000 106,000 116,000 96,000 Two pounds of
Prestwich Company has budgeted production for next year as follows:
| Quarter | ||||
| First | Second | Third | Fourth | |
| Production in units | 86,000 | 106,000 | 116,000 | 96,000 |
Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 20% of the next quarter's production needs for material A. A total of 34,400 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
| 254,400 pounds | |
| 216,000 pounds | |
| 208,000 pounds | |
| 258,400 pounds |
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Auditing A Risk Based Approach
Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg
12th Edition
035772187X, 978-0357721872
