Question
Prestwich Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units 84,000 104,000 114,000 94,000 Two pounds of
Prestwich Company has budgeted production for next year as follows:
| Quarter | ||||
| First | Second | Third | Fourth | |
| Production in units | 84,000 | 104,000 | 114,000 | 94,000 |
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 25% of the next quarter's production needs for material A. A total of 42,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
| 260,000 pounds | |
| 213,000 pounds | |
| 265,000 pounds | |
| 203,000 pounds |
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Auditing Theory And Practice
Authors: Jerry R. Strawser, Robert H. Strawser
9th Edition
0873939336, 978-0873939331
