Question
The following production budget for the four quarters of 2019: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units 3,000 4,000 5,000 8,000 Each units
The following production budget for the four quarters of 2019:
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | |
| Units | 3,000 | 4,000 | 5,000 | 8,000 |
Each units requires 4 kg of raw materials costing $6 per kilogram. On December 31, 2018, the ending inventory of raw materials was 3,000 kg. Management wants to have a raw materials inventory at the beginning of each quarter equal to 25% of the current quarter's production requirements in units. The production budget for the first quarter of 2020 will be 10,000 units.
Use the information provided to answer the following questions: a) What is the BEGINNING raw materials inventory in kilograms of material for each quarter?
Quarter 1: Answer kilograms
Quarter 2: Answer kilograms
Quarter 3: Answer kilograms
Quarter 4: Answer kilograms
b) What is the ENDING raw materials inventory in kilograms of material for each quarter?
Quarter 1: Answer kilograms
Quarter 2: Answer kilograms
Quarter 3: Answer kilograms
Quarter 4: Answer kilograms
Prepare direct materials purchases budget for Quarter 2: c) What are the total kilograms of raw material that are needed for production in Quarter 4?
Answer kilograms
d) What are the total kilograms of raw material that need to be purchased in Quarter 2?
Answer kilograms
e) What is the total cost of the raw materials purchased in Quarter 3?
$ Answer
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Mastering Accounting Skills
Authors: Margaret Nicholson
3rd Edition
1403992703, 978-1403992703
